#NZDUSD @ 0.63431 is aiming to reclaim the 0.6350 hurdle despite a solid risk-aversion theme. (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)]

• NZD/USD is aiming to reclaim the 0.6350 hurdle despite a solid risk-aversion theme.
• The New Zealand Dollar is holding its revival amid optimism about China’s reopening.
• Fed’s ultra-hawkish policy has resulted in a sheer decline in US Pending Home Sales data.

The pair currently trades last at 0.63431.

The previous day high was 0.6356 while the previous day low was 0.6257. The daily 38.2% Fib levels comes at 0.6318, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6295, expected to provide support.

The NZD/USD pair has extended its recovery above 0.6320 in the Asian session. Earlier, the Kiwi asset picked up demand after dropping to near the round-level support at 0.6300. The major is expected to extend its recovery to near 0.6350 despite the risk-aversion theme in the global market.

The return on 10-year US Treasury bonds has trimmed to near 3.86% despite caution in the market led by a sheer spike in Covid-19 infections in China, however, the upside is still favored. Meanwhile, S&P500 futures are not getting decent traction from the market participants amid weak risk appetite. The US Dollar Index (DXY) is struggling to cross the critical resistance of 104.40. Ambiguity in performance from different asset classes is expected ahead as trading activity has dropped amid the festive mood.

The continuation of an ultra-hawkish monetary policy by the Federal Reserve (Fed) is significantly impacting the realty sector in the United States. On Wednesday, the National Association of Realtors published the Pending Home Sales, which declined by 4% on a monthly basis in November while the street was expecting an expansion of 0.6%. Higher interest rates by the Fed have forced households to drop the expression of buying a new home at the current juncture.

Although, risk-perceived assets are facing the heat of China’s reopening after strict Covid measures. The New Zealand Dollar is holding its revival move as ease in supply chain disruptions will increase the trading activity of New Zealand with China. It is worth noting that New Zealand is one of the leading trading partners of China.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6335 at the time of writing. Pair opened at 0.6304 and is trading with a change of 0.49 % .

The pair is trading below its 20 Daily moving average @ 0.6351, above its 50 Daily moving average @ 0.6135 , above its 100 Daily moving average @ 0.6042 and above its 200 Daily moving average @ 0.6247

The previous day high was 0.6356 while the previous day low was 0.6257. The daily 38.2% Fib levels comes at 0.6318, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6295, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6255, 0.6207, 0.6156
• Pivot resistance is noted at 0.6354, 0.6405, 0.6453

[/s2If]
Join Our Telegram Group