#NZDUSD @ 0.61077 bears throw in the towel at fresh cycle lows. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER 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_level1)]

• NZD/USD bears throw in the towel at fresh cycle lows.
• FOMC minutes rescue the bird from a dovish RBNZ outcome.

The pair currently trades last at 0.61077.

The previous day high was 0.6303 while the previous day low was 0.6233. The daily 38.2% Fib levels comes at 0.626, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6277, expected to provide resistance.

NZD/USD dropped out of the sky on Tuesday and made fresh lows on Wednesday on the back of the Reserve Bank of New Zealand. The pair fell from a high of 0.6256 and to a low of 0.6093.

´´The Kiwi remains on the back foot after getting slaughtered in the wake of yesterday’s extraordinary dovish RBNZ MPS, which suggests, on the face of it that the RBNZ feels it has done enough to tame inflation,´´ analysts at ANZ Bank explained.

´´While markets were taken aback, they haven’t fully bought into it, with the risk of another hike still priced in, but it’s forced a complete re-think for the Kiwi,´´ the analysts added.

´´On the one hand, the decision took away about 40bp of carry we thought we’d get (markets were pricing in a 5.9% peak in the OCR and the RBNZ is at 5.5%), but on the other, the NZD is still the only G10 currency that offers carry vs the USD, and that won’t be missed by anyone who wants to short the USD. So, even though the Kiwi’s pride has taken a hit, it’s still #1 in the carry stakes. That’s a positive,´´ the analysts concluded.

Meanwhile, the Federal Open Market Committee minutes on Wednesday showed that the board members agreed that inflation risks are still unacceptably high but officials also generally agreed that the extent of further hikes are less certain.

Overall, the Fed minutes show officials were split on support for more hikes, resulting in a muted reaction in markets, throwing the bird a lifeline.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6113 at the time of writing. Pair opened at 0.6248 and is trading with a change of -2.16 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6237, 50 SMA 0.623, 100 SMA @ 0.6273 and 200 SMA @ 0.6156.

The previous day high was 0.6303 while the previous day low was 0.6233. The daily 38.2% Fib levels comes at 0.626, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6277, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.622, 0.6191, 0.6149
• Pivot resistance is noted at 0.629, 0.6332, 0.636

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group