NZD/USD Price Analysis: Breaks short-term support line despite PBOC inaction

NZD/USD refreshes intraday low to 0.6584 after PBOC left key rates unchanged.
An ascending trend line from September 24 offers additional support.
200-bar SMA holds the key to fresh upside towards the monthly top.

Anil Panchal FXStreet

NZD/USD drops to 0.6584, down 0.27%, after the People’s Bank of China (PBOC) announced no change in benchmark rates during early Tuesday. In doing so, the quote drops below an ascending trend line from October 08.

Read: PBOC keeps one-year Loan Prime Rate unchanged at 3.85% in October

The underlying reason could be traced from the recently bearish comments by the RBNZ Governor Adrian Orr.

Read: RBNZ's Orr: Aware of asset price inflation, operating with medium-term focus

However, a bit broader ascending support line, at 0.6575 now, could challenge the NZD/USD bears before directing them to the monthly low of 0.6546.

Alternatively, the pair’s bounce back beyond the support-turned-into-resistance line, currently around 0.6590, will aim for the 200-bar SMA level of 0.6645.

It should be noted that the NZD/USD bulls’ dominance past-0.6645 can refresh the monthly top of 0.6683.

NZD/USD four-hour chart

Trend: Bearish

Additional important levels

Overview
Today last price	0.6587
Today Daily Change	-17 pips
Today Daily Change %	-0.26%
Today daily open	0.6604

Trends
Daily SMA20	0.6606
Daily SMA50	0.6631
Daily SMA100	0.6585
Daily SMA200	0.6389

Levels
Previous Daily High	0.6647
Previous Daily Low	0.6602
Previous Weekly High	0.6683
Previous Weekly Low	0.6576
Previous Monthly High	0.6799
Previous Monthly Low	0.6511
Daily Fibonacci 38.2%	0.6619
Daily Fibonacci 61.8%	0.663
Daily Pivot Point S1	0.6588
Daily Pivot Point S2	0.6573
Daily Pivot Point S3	0.6543
Daily Pivot Point R1	0.6633
Daily Pivot Point R2	0.6663
Daily Pivot Point R3	0.6678

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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