#NZDUSD @ 0.56456 The New Zealand dollar appreciates further nad reaches 0.5640. (Pivot Orderbook analysis)

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• The New Zealand dollar appreciates further nad reaches 0.5640.
• NZD/USD likely to extend losses to 0.50 – ING.

The pair currently trades last at 0.56456.

The previous day high was 0.5629 while the previous day low was 0.5545. The daily 38.2% Fib levels comes at 0.5577, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5597, expected to provide support.

The New Zealand dollar has picked up momentum on Tuesday’s US session after bouncing up from 0.5575, to hit day highs at 0.5640 so far. The pair appreciates beyond 1% on the daily chart to pare some of the previous three days’ losses.

The greenback seems to have lost steam on Tuesday after a four-day rally. The US Dollar Index is showing a moderate reversal, which is helping most of the major currencies to regain some of the recent losses.

Investors mood seewms to be improving, after a negative US market opening, and the main stock indexes showing gains at the time of writing, which is increasing demand for rislier assets in detriment of the safe-haven dollar.

On a wider perspective, however, the market is awaiting the release of a key US inflation report, due later this week. According to most accounts, price pressures are likely to have increased oin the US, which would offer additional reasons to the Federal Reserve to approve another aggressive rate hike in November, and offer a fresh boost to the USD.

The FX analysis team at ING maintain their bearish outlook intact and see the pair likely to reach 0.50: The Reserve Bank of New Zealand hiked by another 50 bps in October and signalled more tightening is on the way. Another 50 bps increase is largely expected at the November meeting. The role of monetary policy remains secondary compared to global risk dynamics (…) NZD/USD is looking at the 0.50 2009 lows as the next key support.”

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5642 at the time of writing. Pair opened at 0.5567 and is trading with a change of 1.35 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5783, 50 SMA 0.6042, 100 SMA @ 0.6174 and 200 SMA @ 0.6439.

The previous day high was 0.5629 while the previous day low was 0.5545. The daily 38.2% Fib levels comes at 0.5577, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5597, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5531, 0.5495, 0.5446
• Pivot resistance is noted at 0.5616, 0.5665, 0.5701

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