OctaFX | OctaFX Forex Broker
Open trading account
Back

NZD/USD Price Analysis: Sellers break weekly support line to attack 0.6700

  • NZD/USD snaps four-day winning streak after RBNZ comments.
  • MACD turns the most bearish in a week as sellers dominate below the key Fibonacci retracement levels.
  • 200-bar SMA on the bears’ radar, 0.6800 can lure the bulls during the fresh rise.

NZD/USD drops to 0.6693, down 0.58% intraday, after RBNZ’s stress test conveyed the severity of coronavirus (COVID-19) led economic conditions during early Thursday. In doing so, the pair broke an ascending trend line from September 08 while slipping below 61.8% and 50% of the Fibonacci retracement of September 02-08 downside.

Read: Banks stress test outcome reinforces need tor strong capital buffers - RBNZ

As a result, the sellers are preparing to revisit a 200-bar SMA level of 0.6637 before targeting the monthly low near 0.6600.

However, an extended break of the trend line, at 0.6689 now, becomes necessary to confirm NZD/USD weakness.

Meanwhile, the key Fibonacci retracement levels can offer immediate resistances around 0.6695 and 0.6720 ahead of the recent high near 0.6760.

Though, any further upside past-0.6760 will depends upon how well the bulls manage to cross the monthly high of 0.6790 and remain strong beyond the 0.6800 threshold.

NZD/USD four-hour chart

Trend: Bearish

 

Banks stress test outcome reinforces need tor strong capital buffers - RBNZ

Reserve Bank of New Zealand's (RBNZ) take on the banking sector stress tests are crossing the wires via Reuters and LiveSquawk. The stress test result
Read more Previous

BOE to remain on hold, hint at future easing – Scotiabank

Analysts at Scotiabank are out with a brief preview of Thursday’s Bank of England (BOE) monetary policy decision due at 1100 GMT. Key quotes “In betw
Read more Next
Start livechat