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22 Jan 2016
NZD/USD: bulls tire falling back on 4hr 50 sma
FXStreet (Guatemala) - NZD/USD got a lift at the end of the week in Asia and in yesterday's closing trade as risk appetite improved and enabled the antipodeans some relief through key resistance levels to set a more bullish tone ahead of next week's FOMC.
"While some Fed speakers continue to be complacent, we have our doubts about both the inflation outlook and the pace of the economic recovery, and consequently also about the four rate hikes that the Fed intends to deliver this year. In fact, a few Fed speakers now appear to share our concerns. We expect only two hikes with risks skewed to the downside," explained analysts at Rabobank
While the CPI data was not pretty for New Zealand and fueling expectation of a rate cut from the RBNZ sooner than later, bulls were able to enjoy an extended recovery from the lows of 0.6347 to yesterday's high of 0.6559 before consolidating between there and today's levels of 0.6480's support.
NZD/USD levels
Technically, having rallied through the 200 sma on the hourly chart at 0.6470 today, it has broken the descending resistance and consolidation of the downtrend for the year so far and is supported by the 50 sma on the 4hr sticks at 0.6468 currently. RSI on the 4hr sticks as returned to neutral at 55 while trading below the pivot of 0.6494.
"While some Fed speakers continue to be complacent, we have our doubts about both the inflation outlook and the pace of the economic recovery, and consequently also about the four rate hikes that the Fed intends to deliver this year. In fact, a few Fed speakers now appear to share our concerns. We expect only two hikes with risks skewed to the downside," explained analysts at Rabobank
While the CPI data was not pretty for New Zealand and fueling expectation of a rate cut from the RBNZ sooner than later, bulls were able to enjoy an extended recovery from the lows of 0.6347 to yesterday's high of 0.6559 before consolidating between there and today's levels of 0.6480's support.
NZD/USD levels
Technically, having rallied through the 200 sma on the hourly chart at 0.6470 today, it has broken the descending resistance and consolidation of the downtrend for the year so far and is supported by the 50 sma on the 4hr sticks at 0.6468 currently. RSI on the 4hr sticks as returned to neutral at 55 while trading below the pivot of 0.6494.