NZD/USD Price Analysis: Kiwi suffers as risk-off mode kicks in

NZD/USD has fallen sharply and trades 0.81% lower on Thursday.
The price met some resistance a the 127.2% Fib extensions.

Rajan Dhall, MSTA FX Daily

NZD/USD 4-hour chart

NZD has struggled today as the currency is often correlated with the risk environment. The NZD/USD had been living on borrowed time after the last dovish RNBZ changes not really having a material effect on the NZD at the time. It seems now there has been an additional excuse for a correction.

Looking at the chart, the price found some resistance at the 127.2% Fibonacci extension. This is also very close to the blue resistance zone from a previous wave back in December 2019. On the downside, the move stopped at a support level which had been tested four times recently. This was at the psychological 0.67 figure but if it does break the red internal trendline is lying in wait.

The indicators are pretty mixed at the moment. The MACD histogram is in the red but the signal lines are still above the mid-level. The Relative Strength Index is close to the oversold zone but a move back above 50 could indicate the uptrend is back on.

Overall, this is still an uptrend but watch out for a lower high lower low pattern. If the risk environment doesn't improve there could be some more pain to come but tomorrow the market gets the latest NFP figure and this is sure to inspire some volatility.

Additional levels

NZD/USD

Overview
Today last price	0.6708
Today Daily Change	-0.0064
Today Daily Change %	-0.95
Today daily open	0.6772

Trends
Daily SMA20	0.6613
Daily SMA50	0.6589
Daily SMA100	0.6398
Daily SMA200	0.6383

Levels
Previous Daily High	0.679
Previous Daily Low	0.6741
Previous Weekly High	0.6744
Previous Weekly Low	0.6514
Previous Monthly High	0.6764
Previous Monthly Low	0.6488
Daily Fibonacci 38.2%	0.6771
Daily Fibonacci 61.8%	0.676
Daily Pivot Point S1	0.6745
Daily Pivot Point S2	0.6719
Daily Pivot Point S3	0.6696
Daily Pivot Point R1	0.6794
Daily Pivot Point R2	0.6817
Daily Pivot Point R3	0.6843

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.