NZD/USD: Trend line offers support, turns positive
|NZD/USD found takers around the falling trend line (drawn from Sep 8 high and Sep 22 high) and is now trading on the front foot around 0.7140 levels.
Technical correction underway
The recovery from today’s session low of 0.7109 appears to be a chart driven move, given the spot suffered three-day losing streak. Moroever, the Fed rate hike probability as shown by CME data shows December rate hike bets remain above 70%.
Furthermore, New Zealand government bond yields are trading flat as well. Thus, fundamental factors have not really tilted in favor the Kiwi, forcing us to consider the possibility that chart driven factors are at play here.
Later in the day, the spot remains at the mercy of the overall demand for the US dollars. In US session, consumer confidence number and regional manufacturing indices could influence the pair.
NZD/USD Technical Levels
A break above 0.7148 (Oct 5 low) would open doors for 0.7174 (monthly classic pivot S1). A violation there would expose psychological resistance of 0.72. On the lower side, brech of 0.71 (zero figure) would shift risk in favor of a drop to 0.7077 (Oct 17 low) and 0.7034 (Oct 13 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.