Technical Analysis

NZD/USD touches a low of 0.6903 on the day

The kiwi’s extended fall today continues into European trading with NZD/USD now on the verge of treading water below 0.6900. The crucial support break at the 76.4/23.6 retracement level @ 0.6936 has seen the pair accelerate towards a test of the figure level now.

If 0.6900 fails to hold, it’s a slippery slope for the pair with minor support levels next seen around 0.6850-60 and then it’s a move towards 0.6800. The next major support level seen will be the November low @ 0.6781.

Against the dollar, the kiwi is down by more than 1.1% on the day now. It’s a rough one for the kiwi but the move today is arguably right considering the RBNZ’s remarks that a rate cut moving forward is a “valid” option. Prior to this, pretty much everyone would have thought the RBNZ will only have one direction to move rates – and even though I believe that majority of the market still believes so, there is that added element of uncertainty.

And the market is never a big fan of that.

Source link

Articles You May Like

Best Practices for Creating an Algo Trading System
GBPUSD tests 100 day MA at 1.2892
Forex options expiries Tuesday 15 January 2019
Hopes are up for China-US trade talks
Fed’s Kashkari says the bank has less room to cut rates in a future down turn

Leave a Reply

Your email address will not be published. Required fields are marked *