NZD/USD Price Analysis: Reverses 50-SMA breakout as RBNZ’s Orr appears less hawkish
- NZD/USD reverses post-RBNZ gains as RBNZ Governor Orr hints at sub-par growth, rules out 0.75% rate hike.
- Convergence of 100-SMA, 38.2% Fibonacci retracement restricts short-term downside.
- One-week-old horizontal resistance adds to the upside filters.
NZD/USD takes offers to reverse the latest gains inspired by the Reserve Bank of New Zealand’s (RBNZ) rate hike as Governor Adrian Orr seems cautiously optimistic during the press conference after the interest rate announcement on Wednesday. That said, the Kiwi pair drops to 0.6340, extending the pullback from 0.6383, by the press time.
Also read: RBNZ’s Orr: Not forecasting recession but do see sub-par growth
In addition to RBNZ’s Orr, the quote’s failure to defend the early day’s upside break of the 50-SMA, as well as the cross the one-week-old horizontal resistance, also lured the NZD/USD bears of late.
It’s worth noting that the RSI (14) holds lower ground, suggesting a lack of momentum support.
With this, the Kiwi pair remains vulnerable to testing the 0.6315-10 support confluence including the 100-SMA and 38.2% Fibonacci retracement level of the July-August upside.
However, the NZD/USD weakness past 0.6310 will be questioned by the 0.6300 and an upward sloping support line from mid-July, at 0.6281 by the press time.
Meanwhile, the 50-SMA and the aforementioned horizontal hurdle, respectively around 0.6350 and 0.6385, guard the quote’s recovery moves.
Following that, multiple levels around 0.6420 could test the NZD/USD bulls ahead of directing them to the monthly peak of 0.6468.
NZD/USD: Four-hour chart
Trend: Further weakness expected
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.
