NZD/USD flirting with weekly lows, around mid-0.6300s
- Softer risk sentiment weighed on riskier currencies – like the Kiwi.
- A modest pickup in the USD demand adds to the intraday selling bias.
Having touched a daily high near the 0.6385 regions, the NZD/USD pair met with some fresh supply and is currently placed near the lower end of its weekly trading range.
The pair extended this week’s pullback from near three-month tops – levels beyond mid-0.6400s – and witnessed some follow-through selling on Friday, marking its fourth day of a negative move in the previous five.
Trade headlines driving the sentiment
Against the backdrop of Thursday’s conflicting trade-related headlines, a slightly softer tone around the global equity markets was seen as one of the key factors weighing on perceived riskier currencies – like the Kiwi.
It is worth recalling that officials on Thursday said that both China and the United States have agreed to roll back tariffs in a “phase one” trade deal, though some reports suggest that a preliminary trade pact is far from a done deal.
This coupled with a modest pickup in the US Dollar demand since the early European session further collaborated to the pair’s slide back closer to the overnight swing lows, around the 0.6340-35 strong horizontal support.
It will now be interesting to see if the pair is able to attract some fresh dip-buying interest or the ongoing slide marks the end of the recent corrective bounce/resumption of the prior well-established bearish trend.
Moving ahead, Friday’s US economic docket – highlighting the release of the preliminary Michigan Consumer Sentiment Index for November – will now be looked upon to grab some short-term trading opportunities.
Technical levels to watch
|Today last price||0.6348|
|Today Daily Change||-0.0019|
|Today Daily Change %||-0.30|
|Today daily open||0.6367|
|Previous Daily High||0.6387|
|Previous Daily Low||0.6341|
|Previous Weekly High||0.6458|
|Previous Weekly Low||0.6333|
|Previous Monthly High||0.6437|
|Previous Monthly Low||0.6204|
|Daily Fibonacci 38.2%||0.637|
|Daily Fibonacci 61.8%||0.6359|
|Daily Pivot Point S1||0.6343|
|Daily Pivot Point S2||0.632|
|Daily Pivot Point S3||0.6298|
|Daily Pivot Point R1||0.6389|
|Daily Pivot Point R2||0.6411|
|Daily Pivot Point R3||0.6434|