Quick Technical Overview: Fly Kiwi, Fly? Not Yet - How To Play?
Analytics & Forecasts

Quick Technical Overview: Fly Kiwi, Fly? Not Yet - How To Play?

2 December 2015, 10:14
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Societe Generale made a forecast for NZD related pairs based on fundamental analysis expecting the bearish market condition to be continuing. The main reason for that are the following:

  • house price inflation is up to 15% y/y;
  • expectation for rate cut at next RBNZ meeting to 2.5% from 2.75%.


As we from the chart above - NZD/USD is on primary bearish condition for the ranging within the following key support/resistance levels:

  • 0.6895 resistance, and
  • 0.6102 support level.

Intermediate support level for the pair is 0.6427, and if the price breaks this level to below so we may see 0.6102 level as the next real target.


If we are talking about Australian Dollar to NZD so many analytics (incl Societe Generale for example) mentioned that AUD is stronger compare to NZD for now, and they expect the billish for AUD/NZD: the price is located on the ranging within the border between the primary bearish and the primary bullish market condition between 100 SMA and 200 SMA. And if 1.1084 resistance level is broken so the bullish reversal will be started with the secondary ranging, if the price breaks 1.1638 so the price will be fully reversed to the bullish condition.


By the way, NZD/CAD is having similar bu opposite situation: the price is located on reversal border as well, but we should expect the bearish reversal in this case. If the price breaks 0.8583 resistance and next resistance level at 0.8275 from above to below so the price will be filly reversed to the primary bearish market condition.

The Strategy: Sell NZD.

#nzdusd, AUD/NZD, Societe Generale, NZD/CAD
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