#NZDUSD @ 0.62111 meets with a fresh supply on Friday and drifts back closer to the monthly low. (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 meets with a fresh supply on Friday and drifts back closer to the monthly low.
• Bets for more rate hikes by the Fed, recession fears benefit the USD and exert pressure.
• Investors now look to the US Core PCE Price Index before placing fresh directional bets.

The pair currently trades last at 0.62111.

The previous day high was 0.6252 while the previous day low was 0.6202. The daily 38.2% Fib levels comes at 0.6233, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6221, expected to provide resistance.

The NZD/USD pair comes under some renewed selling pressure following an early uptick to the 0.6245 area on Friday and drops to a fresh daily low during the first half of the European session. The pair is currently placed just a few pips above the 0.6200 mark, well within the striking distance of the monthly low touched last week and a technically significant 200-day SMA.

The US Dollar remains pinned near a multi-week top and continues to draw support from a combination of factors, which, in turn, is seen exerting downward pressure on the NZD/USD pair. Growing acceptance that the Federal Reserve will stick to its hawkish stance for longer remains supportive of elevated US Treasury bond yields and underpins the buck. Apart from this, the cautious market mood benefits the safe-haven Greenback and weighs on the risk-sensitive Kiwi.

The FOMC meeting minutes released on Wednesday showed that officials were determined to raise interest rates further to fully gain control over inflation. Moreover, the incoming upbeat US macro data pointed to an economy that remains resilient despite rising borrowing costs. In fact, the US Initial Jobless Claims unexpectedly fell last week and indicated a still-tight labor market. This, in turn, supports prospects for further policy tightening by the US central bank.

The USD bulls, however, might refrain from placing aggressive bets and move to the sidelines ahead of the release of the Fed’s preferred inflation gauge – the Core PCE Price Index. The crucial data should influence market expectations about the Fed’s future rate-hike path. This, in turn, will drive the USD demand and provide a fresh directional impetus to the NZD/USD pair. Nevertheless, spot prices seem poised to end in the red for the third successive week.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6214 at the time of writing. Pair opened at 0.6233 and is trading with a change of -0.3 % .

The pair is trading below its 20 Daily moving average @ 0.6334, below its 50 Daily moving average @ 0.6352 , above its 100 Daily moving average @ 0.6181 and above its 200 Daily moving average @ 0.6185

The previous day high was 0.6252 while the previous day low was 0.6202. The daily 38.2% Fib levels comes at 0.6233, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6221, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6206, 0.6179, 0.6156
• Pivot resistance is noted at 0.6256, 0.6279, 0.6306

[/s2If]
Join Our Telegram Group