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22 Apr 2016
NZD/USD: bearish but still within ascending channle
NZD/USD has remained consolidated in early Asia after a quiet session's end overnight in the U.S. shift.
The Kiwi succumbed to the greenback after a u-turn on the back of the ECB's announcements. The ECB kept policy on hold while commodities and US stocks both declined lead by oil falling below $44.00 and demand failing to regain the price on the rebound, settling back towards lows of $43.03 and left commodity currencies liking their wounds at multi-day lows.
For the day ahead we await the final macro data, but nothing relevant to the Kiwi specifically and traders will instead be positioning soon for the RBNZ meeting next week while expectations still remain fluid given the RBNZ's previously stated open door policy for further rate cuts this year.
NZD/USD levels
NZD/USD has dropped the 0.70 handle and significantly failed to close above it intraday leaving the downside exposed below the 200 sma at 0.6930. A break of 0.6900 brings in 0.6869/80, (S3 and 100 sma), guarding the trend line support of the ascending channel . On the flip-side, the 20 sma on the 4hr sticks stands at 0.6985 with the pivot at 0.7701. R1 is located at 0.7031 and R2 at 0.7082.
The Kiwi succumbed to the greenback after a u-turn on the back of the ECB's announcements. The ECB kept policy on hold while commodities and US stocks both declined lead by oil falling below $44.00 and demand failing to regain the price on the rebound, settling back towards lows of $43.03 and left commodity currencies liking their wounds at multi-day lows.
For the day ahead we await the final macro data, but nothing relevant to the Kiwi specifically and traders will instead be positioning soon for the RBNZ meeting next week while expectations still remain fluid given the RBNZ's previously stated open door policy for further rate cuts this year.
NZD/USD levels
NZD/USD has dropped the 0.70 handle and significantly failed to close above it intraday leaving the downside exposed below the 200 sma at 0.6930. A break of 0.6900 brings in 0.6869/80, (S3 and 100 sma), guarding the trend line support of the ascending channel . On the flip-side, the 20 sma on the 4hr sticks stands at 0.6985 with the pivot at 0.7701. R1 is located at 0.7031 and R2 at 0.7082.