NZD/USD remains depressed near 0.6900, just above YTD lows touched on Tuesday


  • A combination of factors exerted some pressure around NZD/USD for the third straight day.
  • COVID-19 jitters, a pickup in the US bond yields continued underpinning the safe-haven USD.
  • A generally positive risk tone helped limit any further downside for the perceived riskier kiwi.

The NZD/USD pair maintained its offered tone through the early European session and was last seen hovering near the lower boundary of its intraday trading range, around the 0.6900 mark.

The pair failed to capitalize on the previous day's late rebound from the 0.6880 region, or the lowest level since November 2020, instead met with some fresh supply on Wednesday. This marked the third consecutive day of a negative move – also the fourth in the previous five – and was sponsored by a combination of factors.

Investors remain worried about the potential economic fallout from the spread of the highly contagious Delta variant of the coronavirus. This, along with a sudden pickup in the US Treasury bond yields, continued acting as a tailwind for the safe-haven US dollar and exerted some downward pressure on the NZD/USD pair.

However, a generally positive tone around the global equity markets extended some support to the perceived riskier kiwi. This, in turn, helped limit any deeper losses for the NZD/USD pair, at least for the time being, and warrants some caution for aggressive bearish traders amid absent relevant market-moving economic data.

Hence, it will be prudent to wait for some follow-through selling below the overnight swing lows, around the 0.6880 region, before positioning for any further depreciating move. The NZD/USD pair might then accelerate the downfall further towards testing the next relevant support near the 0.6800 horizontal resistance breakpoint.

Technical levels to watch

NZD/USD

Overview
Today last price 0.6906
Today Daily Change -0.0012
Today Daily Change % -0.17
Today daily open 0.6918
 
Trends
Daily SMA20 0.6999
Daily SMA50 0.7104
Daily SMA100 0.7122
Daily SMA200 0.708
 
Levels
Previous Daily High 0.6955
Previous Daily Low 0.6881
Previous Weekly High 0.7046
Previous Weekly Low 0.6917
Previous Monthly High 0.7289
Previous Monthly Low 0.6923
Daily Fibonacci 38.2% 0.6909
Daily Fibonacci 61.8% 0.6927
Daily Pivot Point S1 0.6881
Daily Pivot Point S2 0.6844
Daily Pivot Point S3 0.6807
Daily Pivot Point R1 0.6955
Daily Pivot Point R2 0.6992
Daily Pivot Point R3 0.7029

 

 

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