NZD/USD reverses yesterday's slide

Haresh Menghani FXStreet

The NZD/USD pair extended its recovery move, having posted a session low at 0.7100 handle, and has now erased all of its losses posted in the previous trading session.

Currently trading around 0.7140-45 region, testing session peaks, the pair reversed early losses to 0.7100 handle and caught fresh bids after RBNZ Governor Graeme Wheeler's optimistic comments that country's inflation would move back to the central bank's target band by Q4 2016.

Moreover, a range-bound greenback price-action, as measured by the overall US Dollar Index, is further supporting the bid tone surrounding the major as investors seemed reluctant to carry big bets ahead of next week's FOMC meeting, which would enable investors to determine the next leg of directional move for the greenback and eventually provide fresh impetus for the pair's near-term trajectory.

Technical levels to watch

A follow through buying interest above 0.7155-60 immediate resistance should now assist the pair towards testing 100-day SMA resistance near 0.7195-0.7200 region. On the downside, 0.7100 handle now seems to have emerged as immediate support, which if broken is likely to drag the pair back towards the very important 200-day SMA support near 0.7050 region.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.7084

12% Bullish
88% Bearish
0% Sideways

Bias Bearish

1 Month

Avg Forecast 0.6964

7% Bullish
64% Bearish
29% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.6909

6% Bullish
78% Bearish
17% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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