NZD/USD technical analysis: Attempting a bounce after biggest weekly loss since July


  • NZD/USD has picked up a bid, possibly due to risk-on in the equities. 
  • The bias remains bearish with lower highs, lower lows setup on the weekly chart. 

NZD/USD is currently trading at 0.6273, representing 0.24% gains on the day. 

The uptick could be associated with the risk-on action in the equities. As of writing, the stocks in New Zealand are up 0.60%. The futures on the S&P 500 are also up close to 0.5% and Australia's S&P/ASX 200 is adding 0.48%. 

The stocks have likely picked up a bid on China's Vice Agriculture Minister's comments that last week's canceled visit by a Chinese trade-delegation to US farm-states has nothing to do with trade talks. 

The Kiwi may extend gains to the 50-hour moving average (MA) at 0.6290 if the risk assets remain bid. 

Technical outlook, however, would remain bearish as long as the pair is trading below the 10-day MA, currently at 0.6346. 

The pair fell by 1.88% last week – the biggest drop since the last week of July – and closed at the lowest level since September 2015, confirming a fresh lower low, lower high pattern on the weekly chart

Hence, the path of least resistance is to the downside and the selling could gather traction once the daily low of 0.6260 is breached. 

Weekly chart

en da

Trend: Bearish

Technical levels

NZD/USD

Overview
Today last price 0.6271
Today Daily Change 0.0013
Today Daily Change % 0.21
Today daily open 0.6258
 
Trends
Daily SMA20 0.6357
Daily SMA50 0.6477
Daily SMA100 0.6535
Daily SMA200 0.6657
 
Levels
Previous Daily High 0.6311
Previous Daily Low 0.6254
Previous Weekly High 0.6392
Previous Weekly Low 0.6254
Previous Monthly High 0.659
Previous Monthly Low 0.6283
Daily Fibonacci 38.2% 0.6276
Daily Fibonacci 61.8% 0.6289
Daily Pivot Point S1 0.6238
Daily Pivot Point S2 0.6217
Daily Pivot Point S3 0.6181
Daily Pivot Point R1 0.6295
Daily Pivot Point R2 0.6331
Daily Pivot Point R3 0.6352

 

 

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