#NZDUSD @ 0.62267 bulls jump in on a dovish Federal Reserve 25bp rate hike. (Pivot Orderbook analysis)

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• NZD/USD bulls jump in on a dovish Federal Reserve 25bp rate hike.
• Federal Open Market Committee Statement flags “some additional policy firming”.

The pair currently trades last at 0.62267.

The previous day high was 0.6258 while the previous day low was 0.6167. The daily 38.2% Fib levels comes at 0.6202, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6223, expected to provide support.

With a dovish 25 bp hike, markets are pricing for the Fed’s tightening cycle nearing an end and the US Dollar was sold off to test the bottom end of 102 DXY. Consequently, the NZ Dollar flew to a fresh high for the month at 0.6282 and was up from a low of 0.6171.

Today’s 25 bp hike was largely anticipated, but only aftermarket expectations whipsawed in recent weeks and the Federal Open Market Committee Statement flags “some additional policy firming” with the dot plot median pointing to one more hike.

Before today´s Federal Reserve event, markets were pricing in a year-end target rate of 4.36%. This has dropped in volatile reactions to the statement to 4.26%. At the time of writing, US 2-year Treasury yields are down to 4.77%, dropping from 4.259% on the day to print a low of 3.958%. Consequently, the US Dollar index, DXY, fell to a low of 102.065 from a high of 103.265 and the bird took off.

Meanwhile, Fed´s chairman Jerome Powell spoke to the press:

Analysts at ANZ Bank explained said, for NZD specifically, ´´it’s still a bit of a tug of war between stock and flow, with the bullish flow traders citing the cyclone rebuild, remoteness from global banking issues, and Reserve Bank of New Zealand hawkishness, and the bearish stock traders citing our current account deficit, one-trick pony housing-centric economy, and credit ratings at risk.´´

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6256 at the time of writing. Pair opened at 0.6194 and is trading with a change of 1.0 % .

The pair is trading above its 20 Daily moving average @ 0.6193, below its 50 Daily moving average @ 0.6306 , below its 100 Daily moving average @ 0.6271 and above its 200 Daily moving average @ 0.6162

The previous day high was 0.6258 while the previous day low was 0.6167. The daily 38.2% Fib levels comes at 0.6202, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6223, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6155, 0.6115, 0.6064
• Pivot resistance is noted at 0.6246, 0.6297, 0.6337

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