NZD/USD recovered from lows on the 0.66 handle hit post RBNZ, but gains were capped by 20 DMA at 0.6695
- RBNZ refraining from cutting rates just yet, but noted that concerns remain about the prospects for slower growth in China and East Asia
- The pair is currently trading at 0.6669, below the 0.67 handle, with immediate resistance at 0.6695 (20 DMA) ahead of 0.6743 (Daily Tenkan)
- Major support is seen at 0.6617 (double bottom 13th, 14th Oct) and further below at 0.6603 (55 EMA) and then at 0.6579 (Daily Kijun)
- Pressures remain to the downside with the FOMC sounding hawkish leaving the door wide open for a rate hike in December
Recommendation: Good to sell rallies around 0.6670/75, SL: 0.6710, TP: 0.6620
Resistance Levels:
R1: 0.6695 (20 DMA)
R2: 0.6743 (Daily Tenkan)
R3: 0.6776 (Oct 28 highs)
Support Levels:
S1: 0.6617 (Double bottom 13th, 14th Oct)
S2: 0.6603 (55 EMA)
S3: 0.6579 (Daily Kijun)
