- 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
|Today last price||0.6906|
|Today Daily Change||-0.0012|
|Today Daily Change %||-0.17|
|Today daily open||0.6918|
|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|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.