NZD/USD Price Analysis: Rebounds around 50 pips from multi-day lows, focus remains on Powell's speech


  • NZD/USD once again finds decent support near the 0.60 confluence support.
  • The set-up warrants some caution before placing aggressive directional bets.

The NZD/USD pair has managed to rebound over 50 pips from the key 0.60 psychological mark and recover a major part of the post-RBNZ losses to multi-day lows. The mentioned level marks an important confluence support comprising of 50-day SMA and the lower end of an ascending trend-channel extending from late March.

This should now act as a key pivotal point for short-term traders as the focus now shifts to the Fed Chair Jerome Powell's speech on current economic issues. Meanwhile, mixed technical indicators on hourly/daily charts warrant some caution for aggressive traders and before positioning for the pair's near-term direction.

Hence, it will be prudent to wait for some strong follow-through buying, possibly beyond the 0.6075-80 region, in order to confirm any near-term bullish bias.

On the flip side, a sustained breakthrough the 0.60 confluence support might now be seen as a fresh trigger for bearish traders and pave the way for further decline. The pair might then turn vulnerable to accelerate the slide further towards 0.5945 intermediate support en-route the next major support near the 0.5900 round-figure mark.

NZD/USD daily chart

fxsoriginal

Techincal levels to watch

NZD/USD

Overview
Today last price 0.6047
Today Daily Change -0.0033
Today Daily Change % -0.54
Today daily open 0.608
 
Trends
Daily SMA20 0.6044
Daily SMA50 0.6027
Daily SMA100 0.6271
Daily SMA200 0.6337
 
Levels
Previous Daily High 0.6124
Previous Daily Low 0.6041
Previous Weekly High 0.6148
Previous Weekly Low 0.5994
Previous Monthly High 0.6176
Previous Monthly Low 0.5843
Daily Fibonacci 38.2% 0.6092
Daily Fibonacci 61.8% 0.6073
Daily Pivot Point S1 0.604
Daily Pivot Point S2 0.5999
Daily Pivot Point S3 0.5957
Daily Pivot Point R1 0.6122
Daily Pivot Point R2 0.6164
Daily Pivot Point R3 0.6205

 

 

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