#NZDUSD @ 0.57671 The kiwi bounces up at 0.5610 and rallies to 0.5755. (Pivot Orderbook analysis)

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• The kiwi bounces up at 0.5610 and rallies to 0.5755.
• The US dollar drops amid Fed easing speculation.
• NZD/USD is unlikely to consolidate above 0.5750 – UOB.

The pair currently trades last at 0.57671.

The previous day high was 0.5743 while the previous day low was 0.5623. The daily 38.2% Fib levels comes at 0.5697, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5669, expected to provide support.

The New Zealand dollar bounced up strongly at 0.5610 on Friday’s early US session to hit fresh two-week highs at 0.5765, favored by a broad-based US dollar weakness.

A news report by the Wall Street Journal published earlier on Friday has suggested that Fed officials would be open to debating the size of future hikes, pointing out to a step back on the tightening cycle in December has hammered the US Dollar.

The WSJ report offsets the positive impact of recent hawkish comments by Fed officials. Only on Thursday, Patrick Harker, The Philadelphia Fed President affirmed that the bank will “keep raising rates for a while.”

Furthermore, a suspected intervention by the Japanese authorities has sent the yen surging across the board. The USD/JPY, as a result, has plunged more than 2.5% in a matter of minutes, which has reverberated on all USD crosses.

Analysts at UOB expect the pair to remain trading sideways over the next weeks, with upside attempts capped below 0.5755: “We highlighted yesterday that NZD ‘could rise above 0.5725 but a sustained advance above this level still appears unlikely’(…) “Our update from two days ago (18 Oct, spot at 0.5675) still stands. As highlighted, NZD appears to have moved into a consolidation phase and is likely to trade between 0.5570 and 0.5755 for the time being.”

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5756 at the time of writing. Pair opened at 0.5679 and is trading with a change of 1.36 % .

The pair is trading above its 20 Daily moving average @ 0.5661, below its 50 Daily moving average @ 0.5934 , below its 100 Daily moving average @ 0.6103 and below its 200 Daily moving average @ 0.6393

The previous day high was 0.5743 while the previous day low was 0.5623. The daily 38.2% Fib levels comes at 0.5697, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5669, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.562, 0.5562, 0.55
• Pivot resistance is noted at 0.574, 0.5802, 0.586

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