NZD/USD found decent support at the 0.6600 level on Tuesday, rebounding from a dip towards the big figure shortly after the US cash open to current levels in the 0.6630s, where the pair trades about 0.3% higher on the day. Today NZDUSD is trading 0.37% higher on the day as markets suspect that an imminent Russian invasion has been averted which has enabled a recovery in risk appetite on Tuesday. Russia said it had withdrawn some of its troops from the Ukraine border. However, the announcement, the United States and NATO said they had yet to see evidence of a drawdown. The NZD/USD is downward biased, as depicted by recent price action in the daily chart. The location of the daily moving averages (DMAs) above the spot price confirms the aforementioned. Failure to reclaim the 50-DMA at 0.6742 on February 10 exerted downward pressure on the pair, retreating towards the 0.6500 area before reclaiming the 0.6600 figure, on improved risk market mood.

However, to shift the NZD/USD outlook to a neutral bias, NZD bulls would need to place a daily close above February 14 0.6650 daily high. In that event, the NZD/USD could probe the 0.6700 figure alongside the 50-DMA at 0.6734. Otherwise,  the NZD/USD first support would be February 4 daily low at 0.6589, followed by January 28 daily low at 0.6529.

The price had been creeping in on the old support turned to resistance but the prospects of a downside continuation were thwarted in New York's trade when the price broke to fresh corrective highs.

This leaves the bulls in play and there are prospects of a surge into the imbalance left between 0.6690's and the 0.6650's for the days ahead.

Bears Optimistic on NZDUSD Reversing Below Daily TL

Feb 16 2022