NZD/USD: Testing support at 0.7160/70 as risk appetite fades


  • The New Zealand dollar closes a six-day rally, pulling back from 0.7215
  • The USD picks up, favored by a moderate risk aversion.
    NZD/USD: Upside bias remains positive while above 0.7160/70.

The New Zealand dollar is about to put an end to a six-day rally against its American counterpart, weighed by a weaker sentiment. The pair has retreated from four-month lows at 0.7215 and is looking for support above previous highs at 0.7160/70.

Risk aversion weighs on the kiwi

The NZD/USD is losing momentum on the back of sourer market sentiment on Thursday as the optimism triggered by the upbeat earnings reports released earlier this week, has faded. Wall Street is trading mixed following disappointing earnings data by the technological firm IBM which has revived concerns about supply chain disruptions.

Beyond that, ongoing concerns about Evergrande’s crisis in China extending into the country’s property sector are keeping demand for the risk-sensitive kiwi restrained. The threat of a deeper liquidity crisis continues gripping the sector; with news about more defaults popping up which is triggering declines on the bonds of most companies of the sector.

NZD/USD: Support art 0.7160/70 maintains the positive bias intact

From a technical perspective, the pair remains strong while above 0.7160/70 (September 3, 10 high). Below there, a further retreat below the 200-day SMA, at 0.7090 area would increase negative pressure and might send the pair to test the psychological level at 0.7000.

On the upside, immediate resistance remains at 0.7220 (Intra-day high) and then 0.7240 (Jun. 7 high), which would clear the path towards 0.7315 (May 23 high).

Technical levels to watch

NZD/USD

Overview
Today last price 0.716
Today Daily Change -0.0042
Today Daily Change % -0.58
Today daily open 0.7202
 
Trends
Daily SMA20 0.6994
Daily SMA50 0.7012
Daily SMA100 0.7021
Daily SMA200 0.7101
 
Levels
Previous Daily High 0.7209
Previous Daily Low 0.7146
Previous Weekly High 0.7078
Previous Weekly Low 0.6912
Previous Monthly High 0.7171
Previous Monthly Low 0.6859
Daily Fibonacci 38.2% 0.7185
Daily Fibonacci 61.8% 0.717
Daily Pivot Point S1 0.7162
Daily Pivot Point S2 0.7123
Daily Pivot Point S3 0.7099
Daily Pivot Point R1 0.7225
Daily Pivot Point R2 0.7249
Daily Pivot Point R3 0.7288

 

 

 

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