NZD/USD: stuck at familiar resistance before FOMC

NZD/USD consolidates ahead of next leg up?
NZD/USD probably depends on the FOMC from here.

Ross J Burland FXStreet

The Kiwi was mostly holding gains from the 10th Dec rally to 0.6952 recent highs in the NY session and is at a standstill in the early Asian shift. Currently, NZD/USD is trading at 0.6933, down -0.08% on the day, having posted a daily high at 0.6941 and low at 0.6932.

FOMC meeting preview: big noise, little substance?

Awaiting FOMC

NZD/USD is likely to continue consolidating without further domestic events and before the FOMC announcements tonight. "But it is fair to say the kiwi has held in well (despite some signs that the domestic economy is wobbling a little right now) and looks to be threatening a further modest squeeze higher, which is not unusual for this time of year," explained analysts at ANZ.

NZD/USD levels

Technicals lean bearish in the near term with the 10/21 hourly SMA crossover while the key support would not come in until 0.69 the figure while, on the wide, the technicals are leaning with a bearish bias also within the aggressive downtrend from 0.7557. The key target to the upside stays with 0.6979 Nov highs while 0.6820, if broken, could be a catalyst for 30th May 2016 territory on the wide down at 0.6680.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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