NZDUSD @ 0.63440 – Support/Resistance analysis: Price Analysis: Reverses 50-SMA breakout as RBNZ’s Orr appears less hawkish

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NZDUSD @ 0.63440 – Support/Resistance analysis: Price Analysis: Reverses 50-SMA breakout as RBNZ’s Orr appears less hawkish

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• NZD/USD reverses post-RBNZ gains as RBNZ Governor Orr hints at sub-par growth, rules out 0.75% rate hike.
• Convergence of 100-SMA, 38.2% Fibonacci retracement restricts short-term downside.
• One-week-old horizontal resistance adds to the upside filters.

The pair currently trades last at 0.63440.

The previous day high was 0.6393 while the previous day low was 0.6317. The daily 38.2% Fib levels comes at 0.6346, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6364, expected to provide resistance.

NZD/USD takes offers to reverse the latest gains inspired by the Reserve Bank of New Zealand’s (RBNZ) rate hike as Governor Adrian Orr seems cautiously optimistic during the press conference after the interest rate announcement on Wednesday. That said, the Kiwi pair drops to 0.6340, extending the pullback from 0.6383, by the press time.

Also read: RBNZ’s Orr: Not forecasting recession but do see sub-par growth

In addition to RBNZ’s Orr, the quote’s failure to defend the early day’s upside break of the 50-SMA, as well as the cross the one-week-old horizontal resistance, also lured the NZD/USD bears of late.

It’s worth noting that the RSI (14) holds lower ground, suggesting a lack of momentum support.

With this, the Kiwi pair remains vulnerable to testing the 0.6315-10 support confluence including the 100-SMA and 38.2% Fibonacci retracement level of the July-August upside.

However, the NZD/USD weakness past 0.6310 will be questioned by the 0.6300 and an upward sloping support line from mid-July, at 0.6281 by the press time.

Meanwhile, the 50-SMA and the aforementioned horizontal hurdle, respectively around 0.6350 and 0.6385, guard the quote’s recovery moves.

Following that, multiple levels around 0.6420 could test the NZD/USD bulls ahead of directing them to the monthly peak of 0.6468.

Trend: Further weakness expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6342 at the time of writing. Pair opened at 0.6347 and is trading with a change of -0.08% % .

The pair is trading above its 20 Daily moving average @ 0.63, above its 50 Daily moving average @ 0.6267 , below its 100 Daily moving average @ 0.643 and below its 200 Daily moving average @ 0.6615

The previous day high was 0.6393 while the previous day low was 0.6317. The daily 38.2% Fib levels comes at 0.6346, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6364, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6312, 0.6276, 0.6235
• Pivot resistance is noted at 0.6388, 0.6428, 0.6464

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