#NZDUSD @ 0.56690 The kiwi remains steady above 0.5650 after its reversal at 0.5730. (Pivot Orderbook analysis)

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• The kiwi remains steady above 0.5650 after its reversal at 0.5730.
• The greenback appreciates as risk appetite fades.
• NZD/USD’s broader outlook remains bearish – Credit Suisse.

The pair currently trades last at 0.56690.

The previous day high was 0.572 while the previous day low was 0.5613. The daily 38.2% Fib levels comes at 0.5679, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5654, expected to provide support.

The New Zealand dollar has trimmed some of the previous two days’ gains on Wednesday, weighed by a strong US recovery and a sourer market mood. Downside attempts, however, have been contained at 0.5650 so far.

The risk appetite observed at the start of the week waned on Wednesday, which has favored the US dollar on the back of its safe-haven status. The world’s major stock indexes have posted moderate gains following a two-day rally at the start of the week.

Furthermore, US Treasury bonds have pushed higher, with the benchmark 14-year note trading above 4% for the first time in 14 years. This, coupled with market hopes of another aggressive rate hike by the Fed in November, has increased the attractiveness of the USD.

Analysts at Credit Suisse see the pair biased lower with the current upside correction limited at 0.5798/5813: “Whilst both daily RSI and MACD are holding bullish divergences, which suggests that the recovery will extend for now, our broader outlook remains outright bearish and we thus see this development only as a correction (…) “Whilst we expect a better near-term ceiling to be found at the 0.5798/5813 level, above here would see scope to test the falling 55-day average at 0.5978.”

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5669 at the time of writing. Pair opened at 0.5684 and is trading with a change of -0.26 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5678, 50 SMA 0.5964, 100 SMA @ 0.612 and 200 SMA @ 0.6404.

The previous day high was 0.572 while the previous day low was 0.5613. The daily 38.2% Fib levels comes at 0.5679, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5654, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5624, 0.5565, 0.5517
• Pivot resistance is noted at 0.5732, 0.5779, 0.5839

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