FXStreet (Guatemala) – NZD/USD has picked up through the hourly 50 SMA and is finding resistance at the 200 SMA on the same time frame.
NZD/USD has followed suit of the risk-on play over the past few sessions around the clock. The move started in Asia, with a strong reading from the Australian business conditions survey that sparked a round of short-covering.
NZD took out the 50 SMA on the hourly chart and progressed from there as stocks bounced in Asia towards the European open. Europe, London and the US have continued with the bullish theme and this continues to support higher yielders and the commodity bloc.
However, tomorrow comes with the RBNZ and a 25 basis cut in the OCR was priced in. “As its stands there is risk that the RBNZ may cut rates twice more this year. We see risk of NZD/USD trending lower towards 0.60 medium-term,” explained analysts at Rabobank.
NZD/USD 200 SMA resisting the rally
Technically, a drop back from the 200 SMA hourly that comes as resistance, 0.6220 comes as first support through th5 50 SMA at 0.6282. The downside towards 0.5910 is then exposed.
(Market News Provided by FXstreet)