NZD/USD off lows, still in the red below 0.7000 mark

  • NZD/USD added to this week’s heavy losses and witnessed selling for the fourth straight day.
  • The post-FOMC strong USD positive move was seen as a key factor behind the ongoing slide.
  • Technical selling below 200-day SMA and the 0.7000 mark further contributed to the decline.

The NZD/USD pair maintained its offered through the early European session and was last seen hovering around the 0.6975-70 region, or the lowest level since early April.

The pair prolonged its recent bearish trajectory and continued losing ground for the fourth straight session on Friday. This also marked the fifth day of a negative move in the previous six and sponsored by the prevalent strong bullish sentiment surrounding the US dollar.

In fact, the key USD Index shot to more than two-month tops and remained well supported by the Fed's sudden hawkish turn. It is worth recalling that the Fed stunned investors on Wednesday and brought forward its projections for the first post-pandemic interest rate hikes.

The so-called dot plot pointed to two rate hikes by the end of 2023 as against March's projection for no increase until 2024. This, to a larger extent, helped offset the overnight sharp pullback in the US Treasury bond yields and mostly disappointing US macro data.

Apart from this, Friday's downfall could further be attributed to some technical selling below the very important 200-day SMA. A subsequent breakthrough the key 0.7000 psychological mark might have already set the stage for an extension of the ongoing depreciating move.

That said, extremely oversold conditions on intraday charts warrant some caution for bearish traders. Hence, it will be prudent to wait for some near-term consolidation or a modest bounce before positioning for a further decline amid absent relevant market moving economic releases.

Technical levels to watch


Today last price 0.6979
Today Daily Change -0.0021
Today Daily Change % -0.30
Today daily open 0.7
Daily SMA20 0.7192
Daily SMA50 0.719
Daily SMA100 0.7178
Daily SMA200 0.7039
Previous Daily High 0.7104
Previous Daily Low 0.6992
Previous Weekly High 0.7244
Previous Weekly Low 0.7115
Previous Monthly High 0.7317
Previous Monthly Low 0.7115
Daily Fibonacci 38.2% 0.7035
Daily Fibonacci 61.8% 0.7061
Daily Pivot Point S1 0.696
Daily Pivot Point S2 0.692
Daily Pivot Point S3 0.6848
Daily Pivot Point R1 0.7072
Daily Pivot Point R2 0.7144
Daily Pivot Point R3 0.7185



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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD recoups 1.1800 mark amid USD weakness

EUR/USD prints minor gains on Tuesday’s morning Asian session. The pair opened higher and moved in a narrow trade band with 15 pips movement. The Euro continues to trade in a range bound manner for the past two weeks.


GBP/USD edges higher past 1.3800 as covid optimism battles Brexit woes

GBP/USD seesaws around 1.3820, following the heaviest daily run-up in a week, amid Tuesday’s Asian session. The cable pair benefited from the latest reduction in the coronavirus numbers at home, as well as the broad softening of the US dollar, the previous day.


EUR/USD recoups 1.1800 mark amid USD weakness

EUR/USD prints minor gains on Tuesday’s morning Asian session. The pair opened higher and moved in a narrow trade band with 15 pips movement. The Euro continues to trade in a range bound manner for the past two weeks.


VeChain price reaches the limit, easy money in VET has been made

VeChain price did trade below the June 22 low in July but has responded with a 40% return (based on the current price) over the last six trading days, a sign of commitment and emotion in a cryptocurrency that had lead the market lower. 

Read more

EU Wrap: Big earnings week, Fed, data, oil, gold, Bitcoin surge

A cautious start to the week as investors prepare for an onslaught of earnings and data, not to mention the Fed meeting on Wednesday. It should be a thrilling week and it comes on the back of a hugely impressive bounceback.

Read more