11 Feb 2015
NZD/USD holds like a champ above 0.74
FXStreet (Bali) - NZD/USD continues to trade quite resilient, and after losing the 0.74 handle on Tuesday, it managed to carve out a base along 0.7380, allowing for a rebound towards 0.7420 now, after the first one was rejected in US hours.
Fundamentally, with the RBNZ Governor Wheeler clarifying its current neutral position in monetary policy last week, as opposed to the more dovish market expectations, and on the back of a stellar US NFP, the pair should continue to see active selling through 0.7440/50, although any decline is currently not being supported by fresh negative inputs in the NZD, which suggests that falls should be gradual/slow in nature. Talk of macro-prudential tools by the RBNZ may negate this scenario and accelerate NZD sales.
Technically, according to Jim Langlands, Founder at FXCharts: "Below the lows (0.7380) would see a slide towards the 200 HMA at 0.7340 and then to the recent low at 0.7330. Below that would suggest a slide to 0.7300, although I am not sure that we see it down here today. Above today’s 0.7439 high will find further sellers, nearby, at the strong 0.7448 level, which is the 4 Feb high and also strong Fibo resistance (38.2% of 0.7887/0.7175)."
Fundamentally, with the RBNZ Governor Wheeler clarifying its current neutral position in monetary policy last week, as opposed to the more dovish market expectations, and on the back of a stellar US NFP, the pair should continue to see active selling through 0.7440/50, although any decline is currently not being supported by fresh negative inputs in the NZD, which suggests that falls should be gradual/slow in nature. Talk of macro-prudential tools by the RBNZ may negate this scenario and accelerate NZD sales.
Technically, according to Jim Langlands, Founder at FXCharts: "Below the lows (0.7380) would see a slide towards the 200 HMA at 0.7340 and then to the recent low at 0.7330. Below that would suggest a slide to 0.7300, although I am not sure that we see it down here today. Above today’s 0.7439 high will find further sellers, nearby, at the strong 0.7448 level, which is the 4 Feb high and also strong Fibo resistance (38.2% of 0.7887/0.7175)."