NZDUSD Technical Analysis | Forexlive
On the daily NZDUSD chart below, we can
see that the price today has spiked to the resistance at 0.6389. This was caused by
the RBNZ which decided for a surprising
50 bps hike instead of the expected 25 bps. This sent the kiwi higher across
the board and we may now see some consolidation or pullback before the next move.
In fact, as we can see from the
distance between the price and the blue short period moving
average, the move has overextended. The focus now will switch to today’s US ISM Services PMI and we may see the USD back in
charge if we get a big miss in the data and the market switches to the
recession trade.
On the 4 hour chart below, we can
see that if we get a pullback, the best place for the buyers would be the
resistance turned support at 0.6270 where we have also confluence with the 61.8% Fibonacci
retracement level. The sellers may want to wait for the market
to clearly switch to a more bear structure with the price first breaking below
the 0.6270 support and the trendline. This will give them more
conviction and control.
On the 1 hour chart below, we can
see that at the moment the price is indeed pulling back. If the buyers are
aggressive enough, we may see them leaning on the minor trendline and the 38.2%
Fibonacci retracement level and target again the resistance and the breakout.
Aggressive sellers, on the other hand, may pile in on the break below the
trendline to target first the support at 0.6270 and then the major trendline.