NZD/USD: bears are in control eyeing Nov lows
- NZD/USD downside opens up below key bearish MA's.
- NZD/USD headed for a test of 0.6818?
NZD/USD has been carving out the downside below short-term MAs on the hourly and 4-hourly time frames. Currently, NZD/USD is trading at 0.6850, down -0.02% on the day, having posted a daily high at 0.6856 and low at 0.6845.
Forex today: DXY higher by 0.1%, sentiment was more elevated
The underperformance in the overnight session, despite the improved risk tone, (although commodity prices admittedly haven’t generally joined in the rally either) analysts at ANZ explained that they suspect support levels will hold, keeping kiwi range-bound today, although note that any US tax reform progress will be key to watch.
Today, the House would pass the tax bill with results as follows: the US House voted 227-205 to overhaul the tax code. 13 Republicans voted no. The Senate Finance Committee will not vote on tax reform until after Thanksgiving, and that is where things could all fall apart while senators have expressed serious misgivings over the cost and effect on the middle class.
AUD/NZD: what is the outlook? - Westpac
Analysts at Westpac noted that momentum remains negative although it has stalled slightly above 0.6820 technical support.
NZD/USD 1-3 month:
There longer-term outlook argues that should that RBNZ remain firmly on hold, as they expect, and the US dollar rises on a delivery of a Fed interest rate rise in December, then NZD/USD should fall to 0.67 by year-end.
NZD/USD broke the 0.69 handle earlier week and dropped further below the 100 SMA on the 4-hour sticks. Further downside opens 26th Oct low of 0.6818 again as a potential target on a break below recent lows of 0.6835. To the upside, 0.6980 guards 0.7055, 9th Oct low.