#NZDUSD @ 0.61658 trades in negative territory for two straight days, losing 0.46% on the day. (Pivot Orderbook analysis)

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• NZD/USD trades in negative territory for two straight days, losing 0.46% on the day.
• The concern about ongoing geopolitical tension lifts the US dollar and exerts some selling pressure on the Kiwi.
• New Zealand NZIER Business Confidence for Q4 arrived at -2.0% vs. -52% prior.
• Investors await the US NY Empire State Manufacturing Index for January, due on Tuesday.

The pair currently trades last at 0.61658.

The previous day high was 0.6249 while the previous day low was 0.6183. The daily 38.2% Fib levels comes at 0.6208, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6224, expected to provide resistance.

The NZD/USD pair drops to near 0.6160 during the early European trading hours on Tuesday. The downtick of the pair is driven by the stronger US Dollar (USD) amid the risk-off environment and the rising Middle East tension. Meanwhile, the US Dollar Index (DXY) rises to a multi-week high near 102.90.

The escalating geopolitical tensions in the Middle East dominate the market sentiment on Tuesday. According to a statement released by Iranian state media, Iran’s Islamic Revolutionary Guard Corps (IRGC) fired missiles at targets in northern Iraq. The report stated that the ballistic missile was struck near the US Consulate in Erbil, Iraq. That being said, the fear of uncertainty and geopolitical tension could boost safe-haven assets like the Greenback and weigh on riskier assets like the New Zealand Dollar (NZD).

On the Kiwi front, the New Zealand NZIER Business Confidence for the fourth quarter came in at -2.0%, significantly improved from the previous quarter’s of -52%, according to the New Zealand Institute of Economic Research (NZIER) on Tuesday. However, the figure failed to lift the Kiwi as traders turned to a cautious mood.

The US NY Empire State Manufacturing Index for January will be released later on Tuesday. On Wednesday, the Chinese economic data, including Q4 Gross Domestic Product (GDP), Industrial Production, and Retail Sales will be a closely watched event. Also, the US Retail Sales will be due on Wednesday. On Friday, the New Zealand Business PMI report will be published. These figures could give a clear direction to the NZD/USD pair.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6167 at the time of writing. Pair opened at 0.6194 and is trading with a change of -0.44 % .

The pair is trading below its 20 Daily moving average @ 0.627, above its 50 Daily moving average @ 0.6154 , above its 100 Daily moving average @ 0.6035 and above its 200 Daily moving average @ 0.6092

The previous day high was 0.6249 while the previous day low was 0.6183. The daily 38.2% Fib levels comes at 0.6208, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6224, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6168, 0.6143, 0.6102
• Pivot resistance is noted at 0.6234, 0.6275, 0.63

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