NEW ZEALAND DOLLAR: KIWI EXTENDS RECOVERY AFTER FIRM RBNZ MONETARY POLICY UPDATE
The New Zealand Greenback seems to be within the technique of staging a rebound pushed by the September RBNZ assembly that confirmed the central financial institution’s shift again towards a extra affected person method concerning financial coverage choices after stunning markets with an aggressive 50bps reduce in August. NZDUSD worth motion stays subdued, nonetheless, recognized by the broad downtrend since mid-July.
NZDUSD PRICE CHART: DAILY TIME FRAME (MAY 31, 2019 TO SEPTEMBER 26, 2019)
Although the Kiwi may be making an attempt to place in a backside across the Zero.6250-Zero.6300 worth stage, which has beforehand served as an space of confluent help throughout the forex pair’s steep slide again in 2015. The uptick within the RSI off oversold territory and MACD indicator wanting like its about to show constructive present encouraging indicators for potential upside continuation in spot NZDUSD. But the 20-DMA and 50-DMA along with the aforementioned downtrend line might preserve additional beneficial properties by the New Zealand Greenback at bay.
GBPNZD PRICE CHART: DAILY TIME FRAME (MAY 05, 2019 TO SEPTEMBER 26, 2019)
Spot GBPNZD has edged decrease after printing what seems to be a double high proper on the 2.0000 deal with – a significant zone of technical confluence highlighted by key month-to-month ranges courting again to 2008 that I highlighted beforehand once I wrote GBPNZD appeared set for an enormous transfer.
The latest episode of power exhibited by the New Zealand Greenback has pushed spot GBPNZD down to check the 1.9500 worth stage, which occurs to align with its 20-DMA. The Pound-Kiwi might be clinging onto this straightforward shifting common in addition to its 23.6% Fibonacci retracement of the bullish leg starting late July for help. If this space offers option to spot GBPNZD bears, the uptrend help line prolonged from the latest string of upper highs comes into scope earlier than the mid-point retracement and longer-term DMAs round 1.9100 are eyed.
— Written by Wealthy Dvorak, Junior Analyst for DailyFX.com
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