NZD/USD Price Analysis: Pulls back from 100-SMA on an eventful day

NZD/USD remains pressured around intraday low following multiple catalyst from Australia, China and New Zealand.
Firmer Aussie jobs report, PBOC rate cut couldn’t withstand NZ PM Ardern’s warning.
RSI retreat, sluggish MACD direct sellers towards the monthly support.
Two-month-old horizontal area acts as an additional upside filter.

Anil Panchal FXStreet

NZD/USD remains on the back foot around 0.6775, extending early Asian losses during Thursday.

In doing so, the Kiwi pair reverses from 100-SMA while justifying New Zealand Prime Minister Jacinda Ardern’s warning to tighten the activity measures if the Omicron spreads faster.

Read: NZ PM Ardern: Won’t resort to lockdowns when omicron arrives

With this, the quote rejects the previous bullish bias due to the upbeat Aussie jobs report for December and the People’s Bank of China’s (PBOC) first 5-year Loan Prime Rate (LPR) cut in 21 months.

That said, the downward sloping RSI line, not oversold, joins sluggish MACD and failures to cross the 100-SMA to direct NZD/USD prices towards a one-month-old rising support line, around 0.6755 by the press time.

In a case where the pair sellers dominate past 0.6755, the year 2021 trough surrounding 0.6700 will regain the market’s attention.

Alternatively, recovery moves beyond 100-SMA level of 0.6800 may aim for 0.6860 but a horizontal area comprising multiple levels marked since late November, close to 0.6890-95, will be a tough nut to crack for the NZD/USD bulls.

Should NZD/USD prices rally past 0.6895, the 0.6900 will act as a validation point for the rally towards the 0.7000 psychological magnet.

NZD/USD: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	0.6777
Today Daily Change	-0.0012
Today Daily Change %	-0.18%
Today daily open	0.6789

Trends
Daily SMA20	0.6805
Daily SMA50	0.6835
Daily SMA100	0.6951
Daily SMA200	0.7018

Levels
Previous Daily High	0.6812
Previous Daily Low	0.6763
Previous Weekly High	0.6891
Previous Weekly Low	0.6736
Previous Monthly High	0.6891
Previous Monthly Low	0.6701
Daily Fibonacci 38.2%	0.6793
Daily Fibonacci 61.8%	0.6782
Daily Pivot Point S1	0.6764
Daily Pivot Point S2	0.6739
Daily Pivot Point S3	0.6715
Daily Pivot Point R1	0.6813
Daily Pivot Point R2	0.6837
Daily Pivot Point R3	0.6862

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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