NZD/USD Price Analysis: Bears eye a continuation to 0.6120
- NZD/USD is correcting the bearish impulse with a 50% mean reversion eyed.
- 0.6120 is eyed as the -272% Fibo in this regard while 0.6100 and 0.6080 come as the next levels of interest.
NZD/USD is flat on the day and has traveled between a low of 0.6172 and a high of 0.6225 thus far. Domestically, the Kiwi has been trying to move up amid bets that the Reserve Bank of New Zealand will stay hawkish and deliver a 25bps hike in May or July following the surprise cash rate lift by 50bps to 5.25% in early April. In the minutes of the prior meeting, it was stated that inflation in the nation remained too high, with employment beyond its sustainable level which is supporting the hawkish consensus.
Meanwhile, from a technical standpoint, NZD/USD is embarking on a run to test a 50% mean reversion level of the prior bearish impulse as follows:
There was a break in structure, however, which opens the prospects of a downside continuation:
0.6120 is eyed as the -272% Fibo in this regard while 0.6100 and 0.6080 come as the next levels of interest.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
