The NZD/USD slumps for the third week in a row, trading at 0.6996 during the New York session at the time of writing. Dismal market sentiment in the financial markets spurred demand for safe-haven currencies, like the US dollar, the Japanese yen, and the Swiss franc. Further, major US equity indices fall, except for the tech-heavy Nasdaq 100, gaining 0.56%. The overnight session witnessed a 50-pip drop in just three hours. It broke some pivot-points support levels on its way down, but the move was capped around the 0.6990 area, in the vicinity of Thursday’s low. Further, as market liquidity evaporated as European traders head into the weekend, the pair remains subdued within the 0.6990-0.7020 range.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

NZD/USD traders’ focus will turn on the New Zealand Retail Sales and the Reserve Bank of New Zealand Monetary Policy Meeting in the upcoming week. Meanwhile, in the US economic docket, Durable Good Orders, GDP for Q3, the Federal Reserve favorite gauge for inflation the PCE and FOMC minutes, would entertain traders. On the technical side, the fundamentals will be supporting Kiwi after completing its bearish correction and set for the hawkish trend. However, the pair needs to break above 0.7060 according to major resistances in regard but the elliot wave pattern of the higher degree suggests that this is just a bearish correction. In the daily time frame NZD/USD is in the 4th wave of bearish correction and any hawkish pattern being formed will signal the continuation of bullish trend. 

Kiwi Building Bullish Momentum for Pullback

farhan fazal

Nov 21 2021