Yahoo Finance NZD/USD Forex Technical Analysis – Could Weaken Under .6298, Strengthen Over .6393
The New Zealand Dollar is edging lower early Wednesday after posting three days of gains, primarily on short-covering. Traders are likely reacting to Australia’s disappointing wage growth report, which came in weak enough to suggest its central bank may have to pull back the reins on a series of aggressive interest rate hikes.
At 08:41 GMT, the NZD/USD is trading .6348, down 0.0013 or -0.20%.
Some light position-squaring ahead of the May 25 Reserve Bank of New Zealand could also be taking place. According to ANZ, the Reserve Bank of New Zealand (RBNZ) is expected to raise its Official Cash Rate (OCR) 50-basis points to 2.00%.
Beyond that, ANZ says the path is murkier. However, they think the RBNZ will switch to the more usual pace of 25bp hikes from July onward as evidence mounts that demand is cooling. However, if any more upside surprises to inflation emerge, the hurdle for another 50-pointer in July is low.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through .6217 will signal a resumption of the downtrend. A move through .6569 change the main trend to up.
The minor trend is also down. A trade through .6380 will change the minor trend to up. This will shift the momentum.
The minor range is .6380 to .6217. Its pivot at .6298 is support.
The nearest resistance is a short-term 50% level at .6393. This is followed by a long-term 50% level at .6467.
Daily Swing Chart Technical Forecast
Trader reaction to .6298 will determine the direction of the NZD/USD on Wednesday.
Bullish Scenario
A sustained move over .6299 will indicate the presence of buyers. If this move creates enough upside momentum then look for an intraday surge into .6380, followed by .6393.
Bearish Scenario
A sustained move under .6298 will signal the presence of sellers. If this generates enough selling pressure then look for the move to possibly extend into the long-term Fibonacci level at .6231, followed by the main bottom at .6217.
The main bottom at .6217 is a potential trigger point for an acceleration to the downside. The daily chart indicates there is plenty of room to the downside with .5921 the next major target.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
Analysis-For Riyadh, Hezbollah setback is rare good news from Lebanon
USD/JPY Price Forecast – The US Dollar Looking Heavy Against the Japanese Yen
Chevron to launch carbon capture project in San Joaquin Valley
No winner yet in Pennsylvania’s hot U.S. Senate Republican primary, key midterm matchup
Wall St opens lower as growth stocks rally wanes, Target slumps
