FXTM information and reviews
FXTM
93%
OctaFX information and reviews
OctaFX
92%
XM information and reviews
XM
91%
FXCC information and reviews
FXCC
90%
Libertex information and reviews
Libertex
89%
FxPro information and reviews
FxPro
88%

Scope for dips towards the 0.6793-0.6776 confluence zone


25 November 2021

A dovish Reserve Bank of New Zealand (RBNZ) policy outcome this week, accompanied by a bloated NZD long positioning sees the kiwi breaking under a protracted 18- month trend support. As Benjamin Wong, Strategists at DBS Bank, notes, support is arriving at a prior confluence zone pegged in the 0.6793-0.6776 zone.  

Prior support confluence just ahead

NZD has fallen post the RBNZ risk event, as it tracks the 12 bps decline on the barometer NZD 2-year yields. Speculative accounts have built persistently long NZD positions from early September. This would cap NZD’s performance given growth potential is starting to diverge against NZ, and that the long positioning is indeed bloated at this juncture.

For now, NZD is still under pressure given the break of the 18-month trend support as a key support peg at 0.6930 has caved in. This brings attention to the late August lows at 0.6805.

NZD/USD is expected to drift lower towards the 0.6805 lows and perhaps even the 61.8% Fibonacci retracement of the run-up from June’s 0.6377 lows to the 0.7465 spike high that calibrates at 0.6793. The prior confluence zone around Fibonacci markers 0.6793-0.6776 is likely the soft-landing zone that would match the increasingly oversold readings. Look for support to hold up.

#source

Share:


Related

NZD/USD slips back near intraday low around 0.6290
NZD/USD slips back near intraday low around 0.6290

NZD/USD has failed to defend its intraday low after a modest pullback. Fed policymaker has painted a hawkish picture for the rest of the year. Kiwi’s downbeat employment data could backfire later...

5 Aug 2022

NZD/USD slips below 0.6300 mark
NZD/USD slips below 0.6300 mark

NZD/USD witnessed some follow-through selling on Monday and dropped to a near one-month low. Aggressive Fed rate hike bets, the risk-off mood benefitted the safe-haven USD and exerted pressure...

13 Jun 2022

NZD/USD struggles near two-week low, around mid-0.6400s
NZD/USD struggles near two-week low, around mid-0.6400s

A combination of factors dragged NZD/USD to over a two-week low on Tuesday. A softer risk tone undermined the risk-sensitive kiwi amid modest USD strength...

7 Jun 2022

The Kiwi found support
The Kiwi found support

NZDUSD continues rising supported by the RBNZ’s decisions. The New Zealand Dollar continues rising against the USD in the middle of the week. The current quote for the instrument is 0.6498...

25 May 2022

The Kiwi improved
The Kiwi improved

NZDUSD rose after the RBNZ’s decisions but couldn’t keep up. The New Zealand Dollar rose pretty much against the USD in the morning but couldn’t keep the positive momentum later...

13 Apr 2022

NZD/USD moves back above 0.7000 mark
NZD/USD moves back above 0.7000 mark

NZD/USD gained traction for the second successive day and shot to a fresh YTD high on Tuesday. The uncertainty underpinned commodities and benefitted...

5 Apr 2022


HFM information and reviews
HFM
87%
IronFX information and reviews
IronFX
86%
FXCM information and reviews
FXCM
85%
Pepperstone information and reviews
Pepperstone
84%
NordFX information and reviews
NordFX
83%
LegacyFX information and reviews
LegacyFX
82%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.