NZD/USD testing bids around 0.68

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    NZD/USD is falling sharply, now testing bids around 0.68 handle as dovish Fed and weak USD is widely believed to influence RBNZ’s policy decision.

    Rejected at 0.6874

    Pair turned lower from the high of 0.6874 as US dollar bears took a breather, making way for a bout of profit taking on USD shorts. The selling intensified as markets believe RBNZ is most likely to be affected by the changes in the dollar.

    The central banks has already cut rates last week and pointed to more easing in the near future. Fed’s dovish stance and the resulting rise in NZD may force RBNZ to further push the dovish button.

    NZD/USD Technical Levels

    The spot currently trades around 0.6807. A break below 0.68 would open doors for a drop to 0.6739 (Feb 12 high) and 0.67 handle. On the other hand, a break above 0.6819 (Mar 4 high) would expose hurdle at 0.6874 (daily high) and 0.69 handle.
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