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FxWirePro: NZD/USD upside stalls at channel top, slips below 5-DMA at 0.6969

Despite risk-on sentiment, the Kiwi has been left on the sidelines, trades narrow range on the day (0.6982-0.6955). Upside in the pair stalls at channel top resistance at 0.7054, pair has now slipped below 5-DMA support …

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FxWirePro: NZD/USD upside stalls at channel top, slips below 5-DMA at 0.6969
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  • Despite risk-on sentiment, the Kiwi has been left on the sidelines, trades narrow range on the day (0.6982-0.6955).
     
  • Upside in the pair stalls at channel top resistance at 0.7054, pair has now slipped below 5-DMA support at 0.6970.
     
  • Higher US equities overnight and rising oil prices provided fresh impetus to the Asian indices. 
     
  • Data earlier today showed NZ’s jobs ads rose strongly in March, internet job advertising lifted 2.8% (sa) in March, while newspaper job advertising rose 4.4% m/m (sa), but remains on a downward trend.
     
  • The bird has had its own domestic positives of late, including upbeat dairy prices. Focus now shifts to RBNZ policy meet next week. 
     
  • After recently surprising markets with a rate cut to all time record lows of 2.25%, Wheeler left the door open for further cuts in a very weak inflationary environment.
     
  • Technicals on 4H charts support downside. Pair finds next support at 0.6955, breaks below will find next support at 0.6920 and then 0.6880 (rising trendline).
    ​

Recommendation: Good to sell rallies around 0.6970/75, SL: 0.70, TP: 0.6920/0.69/0.6880

 

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