NZD/USD technical analysis: Recovers a major part of early lost ground to 0.6490-80 support area

The NZD/USD pair showed some resilience below the 0.6500 handle and once again managed to find some support near the 0.6490-80 horizontal zone.
The said region had acted as strong support in late-May and was retested in mid-June, which should now act as a key pivotal point for short-term traders.

Haresh Menghani FXStreet

Given the recent slump of over 300-pips from the vicinity of the 0.6800 handle - three-month tops set on July 19, extremely oversold conditions seemed to be the only factor holding traders from placing any aggressive bearish bets and helped limit further downside, at least for the time being.

Investors also seemed reluctant and preferred to wait on the sidelines ahead of the upcoming release of quarterly employment details from New-Zealand on Tuesday, which followed by the latest RBNZ policy update on Wednesday will help determine the next leg of a directional move.

However, a sustained breakthrough the mentioned support now seems to accelerate the fall further towards September 2018 swing lows - around the 0.6430 region, before the pair eventually slides below the 0.6400 handle towards testing its next major support near the 0.6380-75 region.

Meanwhile, on the upside, any further recovery now seems to confront some fresh supply near mid-0.6500s and seems more likely to remain capped near the 0.6575-80 region amid renewed fears of a full-blown trade war between the world's two largest economies.

NZD/USD daily chart

NZD/USD

Overview
Today last price	0.6519
Today Daily Change	-0.0017
Today Daily Change %	-0.26
Today daily open	0.6536

Trends
Daily SMA20	0.6665
Daily SMA50	0.6627
Daily SMA100	0.6659
Daily SMA200	0.6726

Levels
Previous Daily High	0.6565
Previous Daily Low	0.6505
Previous Weekly High	0.6642
Previous Weekly Low	0.6505
Previous Monthly High	0.6792
Previous Monthly Low	0.6543
Daily Fibonacci 38.2%	0.6528
Daily Fibonacci 61.8%	0.6542
Daily Pivot Point S1	0.6506
Daily Pivot Point S2	0.6475
Daily Pivot Point S3	0.6446
Daily Pivot Point R1	0.6566
Daily Pivot Point R2	0.6595
Daily Pivot Point R3	0.6626

Author

Haresh Menghani

FXStreet

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

GBP/USD gains as easing Fed hike bets weigh on US Dollar

GBP/USD continues its winning streak for the ninth consecutive day, trading around 1.3390 during the Asian hours on Tuesday. The currency pair rises as the US Dollar faces headwinds as market participants scale back expectations for Federal Reserve rate hikes this month and in September.

EUR/USD eases toward 1.1400 as Hormuz risks support USD

EUR/USD is easing toward 1.1400 in European trading on Tuesday, facing rejection at the 1.1450 level. The pair loses ground amid a modest recovery in the safe-haven US Dollar, as renewed tensions in the Strait of Hormuz and Asian tech sell-off fuel risk aversion.

Gold sticks to losses as inflation fears lift US bond yields and USD amid Hormuz risks

Gold maintains its offered tone heading into the European session, albeit it holds above the $4,100 mark. Crude oil prices edge higher amid renewed tensions in the Strait of Hormuz, reviving inflationary concerns. This, in turn, triggers a fresh leg up in US Treasury bond yields, offering some support to the US Dollar, and weighing on the non-yielding yellow metal for the second straight day.

Bonk extends correction after $20 million hack from BonkDAO treasury

Bonk remains under pressure, trading below $0.0000044 after losing over 10% in the previous day. Monday’s correction occurred as Bonk Decentralized Autonomous Organization announced a governance exploit that resulted in the theft of $20 million worth of BONK tokens from its treasury.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance, arguing that the current world demands more flexibility.