NZD/USD PRICE ANALYSIS: BEARS KEEP THE REINS BELOW 0.6600 DESPITE RBNZ-LED BUYING

  • NZD/USD prints mild gains following its bounce off 50% Fibonacci retracement of June-July upside.
  • MACD turns bearish for the first time in a week, falling channel portrays the sentiment weakness.
  • An upside break of 0.6650 will strengthen bulls’ run-up.
  • RBNZ, New Zealand’s Finance Minister Grant Robertson announced measures to combat the coronavirus (COVID-19) economic impact.

NZD/USD picks up the bids near 0.6570, up 0.16% on a day, during the early Thursday. The pair recently benefits from the efforts of Reserve Bank of New Zealand (RBNZ) and Finance Minister Robertson while extending pullback from 0.6544.

Read: RBNZ: Term for lending has been extended to five years from three years

Even so, MACD challenges the bulls and so does a falling channel formation established since July-end.

As a result, buyers may not respect the latest pullback as a strong signal for entries unless witnessing a clear break of the mentioned channel’s resistance, at 0.6650. However, an intermediate pullback to 0.6600 can’t be ruled out.

Should the NZD/USD prices cross 0.6650 mark, the previous month’s peak near 0.6715 will be in the spotlight.

On the flip side, 61.8% of Fibonacci retracement and the channel’s support, respectively around 0.6510 and 0.6500, could keep the bears away before diverting them to the late-June peak surrounding 0.6450.

NZD/USD FOUR-HOUR CHART

Trend: Bearish



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