NZD/USD off session lows, still well offered below 0.7300 handle

Haresh Menghani FXStreet

Selling pressure around the NZD/USD pair seems to have halted for the time being, with the pair managing to rebound around 20-pips from weekly lows.

Currently trading around 0.7260-65 band, the pair maintained its offered tone for the second straight session amid rising speculations of further interest-rate cut by RBNZ at its next monetary policy meeting in November.

Meanwhile, a broad based greenback recovery, earlier on Friday, also contributed to the selling pressure. With the US Dollar losing its recovery momentum, the pair seems to have found temporary support ahead of NY opening session.

Lack of any major economic releases from the US is unlikely to provide any fresh impetus and the pair remains at the mercy of price-action surrounding the US Dollar.

Technical levels to watch

A follow through selling pressure below session low support near 0.7240 region, the pair is likely to immediately aim towards 50-day SMA support near 0.7225 region below which a fresh leg of weakness is likely to continue dragging the pair towards 0.7200 round figure mark.

On the flip side, any recovery attempt above 0.7280 level now seems to confront strong resistance at 0.7300 handle, which if conquered should lift the pair to 0.7315 resistance before the pair aims back towards 0.7350-55 strong resistance area.

Sell 17%

Buy 83%

Avg Sell Price 0.7300

Avg Buy Price 0.7243

Liquidity Distribution

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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