Tuesday, November 3, 2015

NZD/USD: stuck on 200 1hr SMA

FXStreet (Guatemala) - NZD/USD has been pressured below the 20 SMA on the hourly chart after a robust start to the week in Asia, despite the troublesome data from China and continued negative outlooks and implications for commodity prices. Also, NZ Finmin warns that RBNZ OCR will likely go down.

The upside is capped by the looks of it in a more dollar friendly environment with the impending Nonfarm Payrolls this week. We also head into year end next month where the Fed may well make their move and make the first rate hike depending on increased confidence that the inflation target of 2% will be met in the medium term and the jobs market will continue to improve.

NZD/USD levels

NZD/USD is glued to the 200 SMA on the hourly chart at 0.6750 and trades around the pivot of 0.6754 as well. There is no clear indication on the technicals where this is heading while fundamentals do not seem to support a bullish case as the price looks to simply consolidate with a bearish bias in a very tight range while below the 200 DMA at 0.7006. A break out of 0.6897 is required to relieve such a bearish bias while 0.6620 guards the downside.
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