NZD/USD hits six-day lows under 0.6200 ahead of Fed interest rate decision

US Dollar recovers strength during the American session, remains in recent range.
FOMC to announce its decision at 18:00 GMT.
NZD/USD near key support of 0.6185/90.

Matías Salord FXStreet

The NZD/USD broke below 0.6220 and slide to 0.6196, hitting a six-day low. The pair holds a negative bias ahead of the FOMC statement and as the dollar strengthens.

Next move depends on Powell and his mates

The Federal Reserve is expected to hike its key interest rate by three-quarters of a percentage point to 2.50% on Wednesday amid high inflation and signs of an economic slowdown. The statement (due at 18:00 GMT), particularly hints about the next steps, will be key for market reaction. Jerome Powell’s press conference will begin at 18:30 GMT.

The US dollar awaits the outcome of the meeting trading around the top of the two-week range across the board. The NZD/USD is hovering around 0.6200, falling for the second day in a row, still above the critical support seen at the 20-day Simple Moving Average at 0.6185/90. On the upside, a consolidation above 0.6250 would point to an extension of the recovery.

The kiwi is among the worst performers on Wednesday hit by a rally in AUD/NZD and the caution across financial markets. The cross broke a critical resistance area at 1.1100 and jumped to test the four-year high at 1.1165/70.

Technical levels

NZD/USD

Overview
Today last price	0.6204
Today Daily Change	-0.0032
Today Daily Change %	-0.51
Today daily open	0.6236

Trends
Daily SMA20	0.6192
Daily SMA50	0.6312
Daily SMA100	0.6514
Daily SMA200	0.6678

Levels
Previous Daily High	0.628
Previous Daily Low	0.6224
Previous Weekly High	0.6305
Previous Weekly Low	0.6141
Previous Monthly High	0.6576
Previous Monthly Low	0.6197
Daily Fibonacci 38.2%	0.6246
Daily Fibonacci 61.8%	0.6259
Daily Pivot Point S1	0.6213
Daily Pivot Point S2	0.619
Daily Pivot Point S3	0.6157
Daily Pivot Point R1	0.627
Daily Pivot Point R2	0.6303
Daily Pivot Point R3	0.6326

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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