Even if USD strength dragged the NZDUSD to 2018 lows, the 0.6945-55 horizontal-region is presently restricting the pair’s downside ahead of the RBNZ. While the New Zealand central-bank isn’t expected to alter its current monetary policy, a bit hawkish tone of the newly appointed Governor and/or upward revision to quarterly economic forecasts could highlight the oversold RSI & trigger the pair’s U-turn to the 0.6990 and then to the 0.7050-55. Moreover, pair’s additional recovery beyond 0.7055 could push buyers to aim for 0.7100 and the 0.7120 while 0.7145-50 area, followed by the 200-day SMA level of 0.7165, could challenge the optimists afterwards. If at all the RBNZ fails to propel the NZD, the pair can run down to 0.6900 and the 0.6870 but its further declines can be questioned by the 0.6815 mark. Should Bears refrain to respect the 0.6815, the 0.6780 and the 0.6750 are likely supports to appear on the chart.
GBPNZD’s latest advances seem finding it hard to clear the 1.9470 immediate barrier, which in-turn signals brighter chances for the pair’s pullback to 1.9340-35 but its following downturn may struggle to conquer the four-month old ascending TL, at 1.9240 now, adjacent to the 100-day SMA level of 1.9200, which if ignored can reprint 1.9140 & 1.9070 as quotes. Alternatively, a D1 close above 1.9470 can fuel the prices to 1.9510 & 1.9575 resistances, which if surpassed may emphasize the 1.9650 and the 1.9740 landmarks for the Bulls. Though, the 1.9760-70 resistance-zone could limit the pair’s rise above 1.9740, if not then 1.9835 can be expected if holding long position.
While 1.0660 confines the AUDNZD’s near-term drop, an immediate descending TL, at 1.0690, may act as adjacent resistance for the pair. Hence, unless breaking the 1.0660-90 area, the pair isn’t likely to register much moves. However, comparative strength of the NZD may fetch the pair to 1.0630 & 1.0615 on the break of 1.0660. Should 1.0615 fall short of disappointing the sellers, the 1.0600, the 1.0575 and the 1.0550 might entertain them. Meanwhile, upside clearance of 1.0690 could escalate the pair’s recovery to 1.0730 & 1.0740 with 1.0755 and the 61.8% FE level of 1.0785 expected to appear on the radar at a later stage.
With an ascending trend-line stretched since late-March activating the NZDCHF’s pullback, the pair is likely to revisit the 0.7000 round-figure before looking at the 0.7015 and the 0.7030 resistances but the downward slanting resistance-line, at 0.7040, could limit the pair’s further north-run. Given the pair’s ability to surpass the 0.7040, the 0.7070, the 0.7100 and the 0.7120 may become traders’ favorites. On the contrary, downside break of 0.6970 can avail 0.6945 support prior to resting on the 0.6930-25 support-zone. If at all the 0.6925 is broke, the 0.6875 may come alive as a quote.
Cheers and Safe Trading,
This article was originally posted on FX Empire
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