NZD/USD: watching developments and RBNZ for a break to below 0.7000

NZD/USD is currently testing the mid way point on the 0.72 handle and in a chop between 0.7230/0.7300 while consolidating the supply from 0.7355.

NZD/USD came under pressure from 0.7480 in mid Sep and has struggled to rebound to anywhere close to the 0.74 handle undermined by a robust greenback that continues to attract safe haven flows amidst uncertainty in respect to central banks and various concerns about the health of the wider global economy. Markets have been pricing in a rate cut from the RBNZ and on such an event, analysts at Westpac suggest that the bird is vulnerable to breaking below 0.7220 towards 0.6950 in November and the Fed tightens to 0.625% in December.

NZD/USD levels

Current price is 0.7263, with resistance ahead at 0.7270 (Hourly 20 EMA), 0.7271 (Daily Classic PP), 0.7274 (Hourly 100 SMA), 0.7279 (Weekly Classic PP) and 0.7283 (Hourly 200 SMA). Next support to the downside can be found at 0.7254 (Daily Low), 0.7253 (Weekly Low), 0.7244 (Daily Classic S1), 0.7244 (Monthly Low) and 0.7229 (Yesterday's Low). Looking at price patterns, we can see a Doji 1-hour candlestick formation, and a Dark Cloud Cover 4-hour formation.