NZD/USD rebounds from four-week lows, sill under 0.6300

Kiwi trims losses versus US Dollar as DXY retreats.
Wall Street turns negative after first minutes of trading.
NZD/USD off lows, moving without clear direction.

Matías Salord FXStreet

The NZD/USD rebounded after hitting the lowest level since late November at 0.6199, climbing to 0.6285. The rebound lost strength as US markets turned negative after the initial half-hour of regular trading on Wall Street.

The Kiwi is still in negative territory for the day versus the Dollar, down 50 pips. The NZD/USD is attempting to recover 0.6250/60, a key technical level. If it is unable to do, the bearish pressure could return. Support levels are seen at 0.6230 and then 0.6200.

On the contrary, if NZD/USD consolidates above 0.6280, it would set the attention on the next resistance seen around 0.6310.

Dollar of lows, but still not giving up

The Greenback lost momentum but so far it has not shown enough conviction for a reversal. The decline so far looks like a correction and it could resume the upside, particularly if US equity prices remain in red. The DXY is up by 0.85%, off highs at 104.40. Earlier it reached 104.85, the highest level since December 20.

Economic data from the US showed the S&P Global Manufacturing Index at 46.2 in December, unchanged from the flash reading. Construction spending rose in November by 0.2% against expectations of a 0.4% slide. On Wednesday, the ISM manufacturing is due and the Federal Reserve will publish the minutes of the latest FOMC meeting.

The GDT Price Index dropped by 2.8% versus market expectations of a 0.6% increase from the latest December auction.

Technical levels

NZD/USD

Overview
Today last price	0.6258
Today Daily Change	-0.0068
Today Daily Change %	-1.07
Today daily open	0.6326

Trends
Daily SMA20	0.6347
Daily SMA50	0.6173
Daily SMA100	0.604
Daily SMA200	0.6238

Levels
Previous Daily High	0.6356
Previous Daily Low	0.6309
Previous Weekly High	0.6373
Previous Weekly Low	0.6253
Previous Monthly High	0.6514
Previous Monthly Low	0.623
Daily Fibonacci 38.2%	0.6327
Daily Fibonacci 61.8%	0.6338
Daily Pivot Point S1	0.6305
Daily Pivot Point S2	0.6283
Daily Pivot Point S3	0.6258
Daily Pivot Point R1	0.6352
Daily Pivot Point R2	0.6377
Daily Pivot Point R3	0.6399

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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