NZD/USD reversal from 0.6150 finds support at 0.6100
May 21, 2020
The New Zealand’s dollar is set to halt a three-day rally from 0.5920 area after hitting resistance at 0.6150. The pair, however seems steady above 0.6100, consolidating gains near the top of the last five weeks’ horizontal range, from 0.5915 to 0.6160/75
The kiwi loses ground as risk appetite vanishes
The NZD/USD advanced on a strong footing earlier this week, to appreciate about 3.5% as the market celebrated the first attempts to ease restrictions after the coronavirus shutdown. Beyond that, RBNZ Governor, Andrew Orr, backtracked on the idea of introducing negative rates, a possibility he suggested only a week before, increasing support for the NZD.
The pair, however, has trimmed gains on Thursday, weighed by sourer market sentiment, with the main equity markets in red amid downbeat macroeconomic data and geopolitical tensions between the US and China increasing negative pressure on risk-sensitive currencies.
NZD/USD consolidating near 0.6175 resistance level
The pair is now trading right above 0.6100 (intra-day level) below here, next potential support levels would be at 0.6060 (Intra-day low) and the 50-day SMA at 0.6000.
On the upside, immediate resistance remains at 0.6175 (April 30 high). If it makes it above here, the pair might increase bullish traction to aim towards the 100-day SMA, now around 0.6225, and then to the 200-day SMA, at 0.6320 area.