NZD/USD Price Analysis: Kiwi refreshes 34-month high after defending support of Jan. 6 high


  • NZD/USD bounces from crucial support as RBNZ revises unconstrained OCR forecast higher. 
  • The Jan. 6 high of 0.7315 is the level to beat for the sellers. 

NZD/USD clocked a high of 0.7384 soon before press time – the level last seen in April 2018. The pair defended the former hurdle-turned-support of 0.7315 (Jan. 6 high) early today, even though the Reserve Bank of New Zealand (RBNZ) expressed willingness to provide more stimulus and stressed its ability to implement negative rates if needed. 

However, the central bank lifted its forecast for the unconstrained OCR, the rate needed to achieve its targets for inflation and unemployment, supporting the case for withdrawal of stimulus in 2022, as noted by Capital Economics in their RBNZ policy review. 

That likely put a bid under the NZD, pushing NZD/USD to fresh multi-year highs above Tuesday's high of 0.7347. 

The daily chart now shows the Relative Strength Index breaking out of its descending channel. As such, further gains could be seen. 

The immediate bias would turn bearish if the pair fails to keep gains above the Jan. 6 high of 0.7315. 

Daily chart

Trend: Bullish

Technical levels

NZD/USD

Overview
Today last price 0.7371
Today Daily Change 0.0029
Today Daily Change % 0.39
Today daily open 0.7342
 
Trends
Daily SMA20 0.7217
Daily SMA50 0.7178
Daily SMA100 0.7004
Daily SMA200 0.6774
 
Levels
Previous Daily High 0.7348
Previous Daily Low 0.7306
Previous Weekly High 0.7316
Previous Weekly Low 0.7158
Previous Monthly High 0.7316
Previous Monthly Low 0.7096
Daily Fibonacci 38.2% 0.7332
Daily Fibonacci 61.8% 0.7322
Daily Pivot Point S1 0.7316
Daily Pivot Point S2 0.729
Daily Pivot Point S3 0.7274
Daily Pivot Point R1 0.7358
Daily Pivot Point R2 0.7374
Daily Pivot Point R3 0.74

 

 

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