NZD/USD Price Analysis: Bounces off 11-week low after China data


  • NZD/USD remains below 61.8% Fibonacci retracement despite China CPI-led pullback.
  • November 2019 low can please sellers while buyers will avoid entry below 200-day SMA.

NZD/USD pulls back from multi-week low to 0.6405 after China released January month inflation data on early Monday.

Read: Chinese CPI YoY (Jan): 5.4% vs 4.9% expected and 4.5% prior, (fastest rise since Oct 2011)

While better than forecast CPI and PPI readings triggered the quote’s bounce from the lowest since November 21, 2019, the quote still remains below the key resistances and remains on the bears’ radar.

Among them, 61.8% Fibonacci retracement of October-December 2019 upside, at 0.6415, acts as the immediate upside barrier, a break of which could challenge January lows near 0.6455/50.

Even if the pair manage to cross 0.6455 on a daily closing basis, 50% Fibonacci retracement and 200-day SMA, around 0.6480 and 0.6505 respectively, will keep buyers in check.

Alternatively, the pair’s declines below 0.6400/0.6395 horizontal support can drag it towards November month bottom surrounding 0.6315.

Assuming the bear’s dominance past-0.6315, 0.6240 will offer an intermediate halt to the southward trajectory targeting the year 2019 low near 0.6200.

NZD/USD daily chart

Trend: Bearish

Additional important levels

Overview
Today last price 0.6405
Today Daily Change 4 pips
Today Daily Change % 0.06%
Today daily open 0.6401
 
Trends
Daily SMA20 0.6549
Daily SMA50 0.659
Daily SMA100 0.6473
Daily SMA200 0.6504
 
Levels
Previous Daily High 0.6465
Previous Daily Low 0.6397
Previous Weekly High 0.6504
Previous Weekly Low 0.6397
Previous Monthly High 0.6741
Previous Monthly Low 0.6453
Daily Fibonacci 38.2% 0.6423
Daily Fibonacci 61.8% 0.6439
Daily Pivot Point S1 0.6377
Daily Pivot Point S2 0.6353
Daily Pivot Point S3 0.6309
Daily Pivot Point R1 0.6445
Daily Pivot Point R2 0.6489
Daily Pivot Point R3 0.6513

 

 

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

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Forex MAJORS

Cryptocurrencies

Signatures