FxWirePro: NZD/USD Upside Stalls at Channel Top, Slips Below 5-DMA at 0.6969

FxWirePro: NZD/USD Upside Stalls at Channel Top, Slips Below 5-DMA at 0.6969

21 April 2016, 08:14
Roberto Jacobs
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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 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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