The New Zealand Dollar remains capped below 0.5900. (Pivot Orderbook analysis)

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• The New Zealand Dollar remains capped below 0.5900.
• Investors are cautious ahead of the results of the US elections.
• NZDUSD’s broader negative outlook remains intact – Credit Suisse.

The pair currently trades last at 0.589.

The previous day high was 0.6 while the previous day low was 0.5899. The daily 38.2% Fib levels comes at 0.5961, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5937, expected to provide resistance.

The New Zealand Dollar remains unable to return above 0.5900 during Wednesday’s US trading session, after having depreciated more than 1% on the day as market sentiment tanked.

In the absence of relevant macroeconomic data, the focus is on the outcome of the US elections, with the investors reluctant to place any significant bet. The latest news has shown better-than-expected results for the democrats, although both parties are still in a tight race to control Congress.

Beyond that, the release of October’s US CPI data, due on Thursday is expected to provide further insight into the Federal Reserve’s next monetary policy decisions, and therefore, it might trigger significant US Dollar volatility.

In the long run, analysts at Credit Suisse maintain their bearish view on the pair, and point out to 0.5600 and below: “The recent recovery in our eyes still looks, for now at least, like a corrective countermove within the broader downtrend. Hence, our broader negative outlook stays intact, though with a move back below 0.5854 and then below 0.5600/5597 needed to turn the market on the path towards the YTD low 0.5510 and then the 2020 low at 0.5468.”

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.589 at the time of writing. Pair opened at 0.596 and is trading with a change of -1.17 % .

The pair is trading above its 20 Daily moving average @ 0.5755, above its 50 Daily moving average @ 0.5823 , below its 100 Daily moving average @ 0.6032 and below its 200 Daily moving average @ 0.6335

The previous day high was 0.6 while the previous day low was 0.5899. The daily 38.2% Fib levels comes at 0.5961, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5937, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.5906, 0.5852, 0.5805
• Pivot resistance is noted at 0.6007, 0.6054, 0.6108

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