NZD/USD: broader bear trend intact, eyes for below 0.68 handle
- NZD/USD bears are in control.
- NZD/USD eyes for 0.6680?
NZD/USD has been stuck in a narrow range at the start of this week although the Kiwi remains on the defensive and the broader factors are driving sentiment, hence the 40 pip loss overnight. NZD/USD consolidated the losses just over the 50% reversal level from the move up from 0.6780 to 0.6840 while the dollar can't keep up the momentum on the bid due to the fragile political backdrop in the US economy that continues to weigh on sentiment for the greenback as well.
The New Zealand economy, global economy, financial markets and agricultural sector - Westpac
NZD on the defensive
"Key support for NZD/USD around 0.6820 gave way to end the week, and it quickly made new lows for the year," explained analysts at ANZ, adding, "while it subsequently bounced, the fact that the NZD has been underperforming despite generally weaker USD sentiment is somewhat telling, and provides a soft signal. With general market risk appetites waning, that should keep kiwi on the defensive."
With support at 0.6740 and resistance at 0.6850, NZD/USD rose from 0.6780 to 0.6839 recent highs and remains in a consolidative wider range since the 0.6880 drop on the 16th November. The collective of MA's was resisting the comeback on the 15th and 16th within the descending trend channel and again overnight marked by a high at the 50 hourly SMA at 0.6819. With the price below the double bottom lows of 0.6815 born from the lows of 9th May and 26th Oct, the technical outlook leans bearish still. Eyes are at 0.6680.