NZDUSD: A sign of Life Above Hourly MA’s
NZDUSD trading 0.22% higher at 0.6350 rebounding above 0.63 mark after hitting yesterday fresh 4-year at 0.6268. New Zealand ANZ Commodity Price rose from previous -1.4% to 0.3% in August. Grant Robertson the New Zealand finance minister, noted yesterday that Government is prepared to respond to global economic shock. RBNZ Governor Adrian Orr said that the recent interest rate cut reflected expectations of a decline in trading growth, lower New Zealand inflation expectations, and a swing by central banks to lower interest rates. The cut reduces the probability of having to do more later.
NZDUSD technical outlook is bearish, but the last hours the pair managed to break above all major hourly moving averages. On the upside, immediate resistance stands 0.6355 today’s high, and then at 0,6546 the 50 day moving average. On the downside immediate support stands at 0.6324 daily low; the pair now facing two important support levels from 2015. First support stands at 0.6259 the low from August 2015 and then at 0.6235 the lows from September 2015; The RSI index rebounded sharply out of the oversold levels that we mentioned in our NZDUSD technical analysis report yesterday. NZDUSD momentum is bearish despite the recent rebound and a visit down to 2015 lows looks possible.