#NZDUSD @ 0.60896 has dropped sharply below 0.6100 as the RBNZ to pause further rate hikes sooner. (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 has dropped sharply below 0.6100 as the RBNZ to pause further rate hikes sooner.
• The US Dollar Index has printed a fresh 10-week high at 103.99 amid a delay in US debt-ceiling issues.
• The RBNZ believes that it has moved the interest rate needle beyond its prior peak consideration.

The pair currently trades last at 0.60896.

The previous day high was 0.6262 while the previous day low was 0.6093. The daily 38.2% Fib levels comes at 0.6157, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6197, expected to provide resistance.

The NZD/USD pair has slipped sharply below the round-level support of 0.6100 in the Tokyo session. The Kiwi asset has faced immense selling pressure after Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr commented on the drawbacks of pushing interest rates well above what was previously considered neutral.

S&P500 futures have trimmed some gains posted in early Asia. The overall market mood is cautious as the United States economy is swiftly approaching a default situation. US Treasury Secretary Janet Yellen is consistently warning the White House that it will be out of funds by June 01 if the borrowing limit remained stagnant.

The US Dollar Index (DXY) has printed a fresh 10-week high at 103.99 amid a delay in US debt-ceiling issues. US President Joe Biden and other congressional leaders are not ready to accept partisan terms from Republicans, which include the removal of additional tax on the Wealthy community and higher spending proposed in the budget.

Meanwhile, the weak certainty of an interest rate hike in June by the Federal Reserve (Fed) has failed to make any impact on the USD Index. Fed policymakers are favoring a hold in the rate-hiking spell for June as tight credit conditions by US regional banks are weighing on inflationary pressures.

On Wednesday, the RBNZ hiked its Official Cash Rate (OCR) by 25 basis points (bps) to 5.50%. RBNZ Orr believes that the central bank has gone beyond what was previously considered neutral. He further added, there were risks that the central bank would need to raise rates due to sticky inflation expectations and continued government spending. If the RBNZ believes that it has moved above its prior peak consideration, room for further rate hikes is extremely less.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6088 at the time of writing. Pair opened at 0.6113 and is trading with a change of -0.41 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6237, 50 SMA 0.6228, 100 SMA @ 0.6272 and 200 SMA @ 0.6155.

The previous day high was 0.6262 while the previous day low was 0.6093. The daily 38.2% Fib levels comes at 0.6157, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6197, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.605, 0.5987, 0.5882
• Pivot resistance is noted at 0.6219, 0.6324, 0.6387

[/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