New Zealand Dollar versus US Dollar after breaking below 0.6960, provided us with a touch down at 0.6860 which was followed by a bullish reversal for the pair to take an exit from the oversold conditions on relative strength index in the interday time frames. NZDUSD couldnt gather hawkish momentum enough to break above the exponential moving averages 50 and 200 on the daily chart while currently trying to find support near 61.8% fibo retracement level on the intraday levels. The pair built on the previous day's goodish rebound from one-week lows and gained some positive traction during the early part of the trading action on Thursday. The risk-on impulse in the markets undermined the safe-haven US dollar, which, in turn, extended some support to the perceived riskier kiwi.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

On the bearish side, Kiwi has already started adapting to the dovish tone and is expected to rally towards  0.6860 and 0.6806 but a confirmation in shape of strong impulsive bearish closing below the 61.8% fibo retracement level that would confirm that the breakout below 0.6960 has triggered the downside trend. On the bullish side, NZDUSD needs to regain the territories above 0.6960 and 0.7020 to activate the bullish trend. a horizontal region comprising levels marked since late August, near 0.6985-90, will challenge the NZD/USD advances before highlighting the 0.7000 threshold and the monthly resistance line, close to 0.7100. Alternatively, pullback moves need a clear break of the 0.6900 round figure to tease the NZD/USD sellers before giving back the controls to them on a clear break of an upward sloping support line from August 20, surrounding 0.6865.

NZDUSD

Oct 07 2021