FxWirePro: NZD/USD rejected at highs, tests strong trendline support at 0.6868
NZD/USD upside stalls shy of the 0.79 handle, the pair was rejected at day's highs by 0.6892. Inverted hammer formation evidenced at highs, pair has edged lower to test strong trendline support at 0.6868. We see weakness…
NZD/USD upside stalls shy of the 0.79 handle, the pair was rejected at day's highs by 0.6892.
Inverted hammer formation evidenced at highs, pair has edged lower to test strong trendline support at 0.6868.
We see weakness on breaks below, test of 0.6850 then likely. However, trend for the day is higher.
The pair is holding above 10-DMA support at 0.6847, momentum studies on dailies support upside.
Data released earlier today showed that NZ house sales volumes in seasonally adjusted terms grew 4.7% m/m last month, as compared with the rise of 4.3% sa in Feb.
But for the first quarter, the house sales volumes declined 2.8% due to major decline in January.
Low inflation backdrop gives the RBNZ scope to further lower OCR; however, the central bank will be cautious regarding the possible housing market impacts, noted ANZ research in a report.
Daily Techs are inconclusive, we prefer to remain on the sidelines for now.
