NZD/USD Price Analysis: Licks RBNZ-led wounds near 0.6900, bears in control


  • NZD/USD pares intraday losses around seven-week low after RBNZ’s rate hike.
  • 78.6% Fibonacci retracement, oversold RSI conditions challenge bears.
  • Two-week-old resistance line, 50-DMA restrict short-term rebound.

NZD/USD stays on the back foot despite a recent bounce off the multi-day bottom to 0.6906 ahead of Wednesday’s European session. The kiwi slumped to the lowest since early October after the Reserve Bank of New Zealand (RBNZ) didn’t surprise markets by 25 basis points (bps) of a rate hike.

Read: NZD/USD slumps towards 0.6900 on RBNZ’s 0.25% rate hike, Governor Orr’s speech eyed

NZD/USD bears drill 13-week-old support line, at 0.6930 by the press time, amid heavy bearish bias portrayed by the MACD. However, RSI nears the oversold territory and hints at a rebound should the quote manage to cross the 61.8% Fibonacci retracement (Fibo.) of August-October upside, around 0.6960.

In a case where the quote rises past the immediate Fibo. hurdle, a descending resistance line from November 09 and 50-DMA, respectively around 0.7020 and 0.7050, will challenge the buyers.

Alternatively, a daily closing below the stated support line figure of 0.6930 will have another chance to recall the NZD/USD buyers, around 78.6% Fibonacci retracement level of 0.6890.

To sum up, the pair bears seem to have tired of late but the bulls have a way to go before retaking the controls.

NZD/USD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price 0.6905
Today Daily Change -0.0049
Today Daily Change % -0.70%
Today daily open 0.6954
 
Trends
Daily SMA20 0.7081
Daily SMA50 0.7048
Daily SMA100 0.7026
Daily SMA200 0.709
 
Levels
Previous Daily High 0.6989
Previous Daily Low 0.6915
Previous Weekly High 0.7082
Previous Weekly Low 0.698
Previous Monthly High 0.7219
Previous Monthly Low 0.6876
Daily Fibonacci 38.2% 0.6961
Daily Fibonacci 61.8% 0.6943
Daily Pivot Point S1 0.6916
Daily Pivot Point S2 0.6879
Daily Pivot Point S3 0.6843
Daily Pivot Point R1 0.699
Daily Pivot Point R2 0.7026
Daily Pivot Point R3 0.7064

 

 

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