At the exchange rate of 0.62115 for NZDUSD, there is resistance which has caused a halt in the four consecutive days of increase to reach the highest point of the month.
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- NZD/USD meets with some supply and stalls a four-day winning streak to the monthly peak.
The pair currently trades last at 0.62115.
The previous day high was 0.625 while the previous day low was 0.6209. The daily 38.2% Fib levels comes at 0.6225, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6235, expected to provide resistance.
The NZD/USD pair attracts some sellers near the 0.6235 region on Monday and extends its steady intraday descent through the Asian session, snapping a four-day winning streak. Spot prices retreat further from the monthly peak touched on Friday and drop to the 0.6200 round-figure mark, or a fresh daily low in the last hour.
The US Dollar (USD) gains some positive traction for the second straight day in the wake of the Federal Reserve’s (Fed) hawkish outlook and turns out to be a key factor exerting some pressure on the NZD/USD pair. It is worth recalling that the Fed last week decided to leave interest rates unchanged, though signalled that borrowing costs may still need to rise by as much as 50 bps by the end of this year. Apart from this, a generally softer tone around the equity markets further benefits the safe-haven buck and drives flows away from the risk-sensitive Kiwi.
Concerns about a global economic downturn, particularly in China, overshadow hopes for additional rate cuts by the People’s Bank of China (PBoC) and continue to weigh on investors’ sentiment. Apart from this, the Reserve Bank of New Zealand’s (RBNZ) explicit signal that it was done with its most aggressive hiking cycle since 1999 further undermines the New Zealand Dollar (NZD). That said, expectations that the Fed is nearing the end of its year-long policy tightening might cap gains for the USD and help limit losses for the NZD/USD pair.
Traders might also refrain from placing aggressive bets and prefer to wait on the sidelines ahead of Fed Chair Jerome Powell’s two-day congressional testimony on Wednesday and Thursday. Investors will look for fresh cues about the Fed’s future rate-hike path, which will play a key role in influencing the near-term USD price dynamics and provide some meaningful impetus to the NZD/USD pair. This, in turn, makes it prudent to wait for strong follow-through selling before confirming that the recent move-up witnessed over the past three weeks or so has run out of steam.
Technical Levels: Supports and Resistances
NZDUSD currently trading at 0.6207 at the time of writing. Pair opened at 0.6211 and is trading with a change of -0.06 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.6207 |
| 1 | Today Daily Change | -0.0004 |
| 2 | Today Daily Change % | -0.0600 |
| 3 | Today daily open | 0.6211 |
The pair is trading above its 20 Daily moving average @ 0.6118, above its 50 Daily moving average @ 0.6178 , below its 100 Daily moving average @ 0.6218 and above its 200 Daily moving average @ 0.6152
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6118 |
| 1 | Daily SMA50 | 0.6178 |
| 2 | Daily SMA100 | 0.6218 |
| 3 | Daily SMA200 | 0.6152 |
The previous day high was 0.625 while the previous day low was 0.6209. The daily 38.2% Fib levels comes at 0.6225, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6235, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.6196, 0.6182, 0.6155
- Pivot resistance is noted at 0.6238, 0.6265, 0.628
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.6250 |
| Previous Daily Low | 0.6209 |
| Previous Weekly High | 0.6250 |
| Previous Weekly Low | 0.6076 |
| Previous Monthly High | 0.6385 |
| Previous Monthly Low | 0.5985 |
| Daily Fibonacci 38.2% | 0.6225 |
| Daily Fibonacci 61.8% | 0.6235 |
| Daily Pivot Point S1 | 0.6196 |
| Daily Pivot Point S2 | 0.6182 |
| Daily Pivot Point S3 | 0.6155 |
| Daily Pivot Point R1 | 0.6238 |
| Daily Pivot Point R2 | 0.6265 |
| Daily Pivot Point R3 | 0.6280 |
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