NZDUSD opens with a modest weekly bearish gap amid the emergence of some USD buying. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• NZDUSD opens with a modest weekly bearish gap amid the emergence of some USD buying.
• Elevated US bond yields and a weaker risk tone help revive demand for the safe-haven buck.
• Bulls might wait for a sustained move beyond the 0.5935-0.5940 area before placing fresh bets.

The pair currently trades last at 0.5881.

The previous day high was 0.5937 while the previous day low was 0.5757. The daily 38.2% Fib levels comes at 0.5868, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5826, expected to provide support.

The NZDUSD pair attracts some buying following a modest bearish gap opening to the 0.5855-0.5850 area on Monday, albeit struggles to capitalize on the move. Spot prices retreat a few pips from the daily top and remain on the defensive below the 0.5900 mark through the early European session amid a modest US Dollar strength.

A combination of supporting factors assists the USD to regain some positive traction on the first day of a new week and recover a part of Friday’s post-NFP slump. In fact, the mixed results from the closely-watched US monthly jobs report fueled speculations that the Federal Reserve could slow the pace of future rate hikes and weighed heavily on the greenback. That said, elevated US Treasury bond yields, along with a softer tone, helps limit any further losses for the safe-haven buck and act as a headwind for the NZDUSD pair.

The market sentiment remains fragile amid concerns about headwinds stemming from China’s commitment to maintaining its economically disruptive zero-COVID policy. This comes amid the protracted Russia-Ukraine war and adds to growing worries about a deeper global economic downturn. Even from a technical perspective, the emergence of fresh selling ahead of the mid-0.5900s warrants caution for bullish traders. Hence, it will be prudent to wait for strong follow-through buying before positioning for any meaningful upside for the NZDUSD pair.

There isn’t any major market-moving economic data due for release from the US, leaving the USD at the mercy of the US bond yields. Apart from this, traders will take cues from the broader market risk sentiment to grab short-term opportunities around the risk-sensitive Kiwi. That said, the mixed fundamental backdrop might force short-term traders to move to the sidelines ahead of the release of the latest US consumer inflation figures on Thursday.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.5881 at the time of writing. Pair opened at 0.5931 and is trading with a change of -0.84 % .

The pair is trading above its 20 Daily moving average @ 0.5718, above its 50 Daily moving average @ 0.5831 , below its 100 Daily moving average @ 0.6039 and below its 200 Daily moving average @ 0.6341

The previous day high was 0.5937 while the previous day low was 0.5757. The daily 38.2% Fib levels comes at 0.5868, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5826, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5813, 0.5695, 0.5634
• Pivot resistance is noted at 0.5993, 0.6055, 0.6173

[/s2If]
Join Our Telegram Group