#NZDUSD @ 0.61372 drops back towards Monday´s open as risk-off sentiment weighs. (Pivot Orderbook analysis)

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• NZD/USD drops back towards Monday´s open as risk-off sentiment weighs.
• Banking sector worries have sunk equities and high beta currencies.

The pair currently trades last at 0.61372.

The previous day high was 0.617 while the previous day low was 0.6125. The daily 38.2% Fib levels comes at 0.6153, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6142, expected to provide resistance.

NZD/USD is down some 0.45% into the closing of the US session and Tuesday´s trade after suffering a risk-off blow with the US Dollar tearing higher since the early Europen session. NZD/USD rallied from a low of 0.6133 and reached a high of 0.6187 on the day.

´´The reversal has come amid a slide in regional bank stocks, which has, in turn, led markets to question how locked in a May Fed hike actually is, and driven safe-haven buying of USDs,´´ analysts at ANZ Bank explained.

Consequently, high beta currencies, such as NZD have fallen as equities drop. The US Dollar index, DXY, benefitted from the risk-off flows and was last up 0.51% at 101.84, a touch off the highs at 101.949. Plunging deposits at First Republic Bank have reignited worries over the health of the banking sector. Additionally, UBS reported a 52% slide in quarterly income as it prepared to swallow fallen rival Credit Suisse.

´´Volatility thus remains elevated, and we may get even more locally today with the release of March trade data, which will only serve as a reminder to markets of NZ’s yawning current account gap – something that we see as a downside risk to our expectation of a mild NZD appreciation in 2023,´´ the analysts at ANZ Bank explained, adding, ´´we also get AU Consumer Price Index data today, which is key given the NZD’s correlation to the AUD.´´

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.614 at the time of writing. Pair opened at 0.6167 and is trading with a change of -0.44 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6232, 50 SMA 0.622, 100 SMA @ 0.6296 and 200 SMA @ 0.6163.

The previous day high was 0.617 while the previous day low was 0.6125. The daily 38.2% Fib levels comes at 0.6153, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6142, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6138, 0.6109, 0.6093
• Pivot resistance is noted at 0.6183, 0.6199, 0.6228

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