Forex Analysis – NZD/USD
The kiwi/greeenback pair has started the session under pressure and a decline is on the cards.
The kiwi is emerging as one of the worst performers ahead of the Fed and the RBNZ policy decisions.
Lost nearly 80 pips throughout the day
NZD/USD lost nearly 80 pips throughout the day and is challenging the 0.6700 support area as investors await central banks’ verdicts.
While the Fed is expected to remain on hold, analysts are split on whether the RBNZ will ease its policy further.
The RBNZ has already cut its key interest rate 3 times since June, from 3.5% to current 2.75% to combat the effects on the real economy of the slump in key export prices, and to weaken the NZD.
At time of writing, NZD/USD is trading at 0.6707, down 0.81% on the day, and having scored a low of 0.6702 so far.
NZD/USD technical outlook
As for technical levels, NZD/USD could find immediate supports at 0.6698 (Oct 21 low) and 0.6600 (100-day SMA) and 0.6565 (50% Fibo retracement of 0.6236-0.6898).
On the other hand, resistances line up at 0.6775 (Oct 28 high), 0.6813 (Oct 27 high) and then 0.6865 (Oct 23 high).
Source: http://www.fxnewscall.com/nzdusd-under-pressure-at-0-6700-handle/1926097/
