NZDUSD broke above a key resistance level on Wednesday, closing above 0.6900 for the first time in five months. The pair also tested a key Fibonacci level at 0.6941– the 50% retracement level of the decline from 0.7743 to 0.6139 (April to August 2015 decline). After hitting a 9-month high of 0.6964 yesterday, the pair reversed back down and fell below the 50% Fibonacci.
Support lies at 0.6754, around where the 38.2% Fibonacci level exists. This is an important support level since it is where the 200-day moving average converges with the Fibonacci level. Meanwhile, if prices move back up and clear the 0.6900 level, there is scope to target 0.7000 and the next Fibonacci level at 0.7130. Failure to rise back above 0.6900 would keep the pair’s neutral bias which it has had since September 2015. NZDUSD has been in a range since the decline from, the April high of 0.7743.
MACD has been flat although above zero, indicating lack of momentum. RSI has not shown any clear trend either in the past month, although it has been trending higher in the past two days. The moving averages also have not shown any clear trend and are quite flat. The 50-day MA though has crossed above the 100-day MA so this could signal a bullish shift if it continues higher.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD edges lower to near 1.0750 after hawkish remarks from a Fed official
EUR/USD extends its losses for the second successive session, trading around 1.0750 during the Asian session on Wednesday. The US Dollar gains ground due to the expectations of the Federal Reserve’s prolonging higher interest rates.
GBP/USD hovers around 1.2500 on the stronger US Dollar, focus on BoE rate decision
The GBP/USD pair trades on a softer note around 1.2500 on Wednesday during the Asian session. The USD Index recovers modestly to 105.40, which drags the major pair lower. Investors focus on the upcoming Bank of England's monetary policy meeting.
Gold price gains momentum, despite a firmer US Dollar
Gold price attracts some buyers during the Asian trading hours on Wednesday. Safe-haven demand, fueled by geopolitical tensions and uncertainty, as well as ongoing central bank purchases, might contribute to a rally in gold.
Ethereum resume sideways move as Grayscale files to withdraw Ethereum futures ETF application with the SEC
Ethereum is hinting at a resumption of a sideways movement on Tuesday after seeing inflows for the first time in seven weeks. Grayscale withdrew its application for an Ethereum futures ETF, and the SEC’s Chair Gary Gensler has also called most crypto assets securities.
No obvious macro catalysts to steer the bus
The US data calendar remains relatively light, with initial jobless claims and the University of Michigan survey being the key focus. However, these releases may not provide a significant catalyst for the next directional move in the US Dollar.