#NZDUSD @ 0.64387 remains pressured around 1.5-month-old ascending support line., @nehcap view: Further downside expected (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 remains pressured around 1.5-month-old ascending support line.
• Repeated failures to cross four-month-old horizontal resistance area, overbought RSI conditions tease sellers.
• Tops marked in May and June add to the upside filters.

The pair currently trades last at 0.64387.

The previous day high was 0.6471 while the previous day low was 0.6401. The daily 38.2% Fib levels comes at 0.6428, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6444, expected to provide resistance.

NZD/USD sellers attack an upward-sloping trend line from early November, near 0.6420, after China’s headline data disappointed during early Thursday. Even so, firmer prints of New Zealand’s (NZ) third quarter (Q3) Gross Domestic Product (GDP) defend the Kiwi pair.

That said, China’s Retail Sales growth eased to -5.9% in November versus -3.6% expected and -0.5% prior while the Industrial Production came in at 2.2% compared to 3.3% market forecasts and 5.0% previous readings.

At home, NZ Q3 GDP improved to 2.0% QoQ and 6.4% YoY versus 0.9% expected and 5.5% market forecasts in that order. It should be noted that the economic growth came in as 1.7% and 0.4% respectively during the second quarter (Q2).

Technically, the nearly overbought conditions of the RSI (14) join the impending bear cross on the MACD to tease sellers. On the same line is the repeated failure of the Kiwi pair to cross a four-month-old horizontal resistance area surrounding 0.6470-80.

Even if the quote rises past 0.6480, the 0.6500 round figure and tops marked during May and June of 2022, close to 0.6570-75, will be an important hurdle for the NZD/USD bulls to cross to keep the reins.

Alternatively, a daily closing below the ascending support line from early November, around 0.6420, becomes necessary for the NZD/USD bears to take control.

Following that, the mid-June swing high near 0.6395 and November’s peak of 0.6290 could lure the sellers.

Trend: Further downside expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6441 at the time of writing. Pair opened at 0.6447 and is trading with a change of -0.09% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6291, 50 SMA 0.5996, 100 SMA @ 0.6039 and 200 SMA @ 0.6274.

The previous day high was 0.6471 while the previous day low was 0.6401. The daily 38.2% Fib levels comes at 0.6428, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6444, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6408, 0.637, 0.6339
• Pivot resistance is noted at 0.6478, 0.6509, 0.6548

[/s2If]
Join Our Telegram Group