NZD/USD: consolidates in key territory below the 23.6% fibo
- NZD/USD managed to hold the key 0.6820 level.
- USD in the driving seat on a key week ahead.
NZD/USD has consolidated the minor correction and has been forced lower on meeting the 100 SMA on the hourly sticks that are located at 0.6881. the price is now testing back below the 21 SMA at 0.6855. Currently, NZD/USD is trading at 0.6855, having posted a daily high at 0.6870 and low at 0.6853.
A busy week ahead previewed - Nomura
Analysts at ANZ noted that despite a generally stronger USD performance, the Kiwi managed to hold the key 0.6820 level (the May 2017 low) to close out the week:
"While the sentiment is likely to remain cautious, USD direction is going to be the driving force from here, and it is a huge week for US-related events. On top of possible developments on tax reform and the Fed chair announcement, there is the FOMC meeting and a swathe of economic releases due. Further USD strength is not assured," the analysts added.
NZD/USD 1 day:
"Falling in response to a stronger US dollar, as well as uncertainty regarding the new government’s policies, and could test 0.6800 if the USD rally continues, argued analysts at Westpac.
NZD/USD 1-3 month:
"If the RBNZ remains firmly on hold, as we expect, and the US dollar rises on the delivery of a Fed interest rate rise in December, then NZD/USD should fall below 0.68 by year end," added the analysts for a longer term outlook.
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NZD/USD levels
The bears took out 0.6908, the 11th April low, the bears look towards 0.6817 10th May 2017 lows and 26th Oct low that is a double bottom on the daily chart. Meanwhile, the FXStreet Technical Confluences Indicator shows that 0.68645 is the 23.6% fibo level while daily RSI is back below neutral levels. On a correction/reversal, the bulls have a lot of legwork to do to get anywhere near out of the bearish territory and only at 0.7080 and 0.7120 levels might there be any conviction in a reversal.