NZDUSD has remained in a sideways trend since peaking in late April as trade tension has generally calmed down significantly and traders reevaluated probabilities for monetary policy in the second half of the year. Of the two central banks, the RBNZ seems clearly more dovish than the Fed, which creates potential headwinds for the Kiwi dollar. The normal situation before 2020 of a carry from buying seems likely to remain reversed until early next year at least.
Strong recovery in mid-late April moderated fairly quickly, with somewhat lower volume and volatility for most of May so far. The 20 SMA is a potential dynamic support but not a very strong one; the 50 SMA from Bands might be more reliable as a dynamic support. The influence of fundamentals seems generally negative and 60c looks like a strong static resistance, having been tested three times, so the upside might be limited for NZDUSD for now.
55c would be the obvious medium-term target for sellers as last month’s low, but a new downtrend from here would probably depend on the Fed’s minutes late on 28 May and American second estimate GDP the next day being received broadly positively. Traders are also looking ahead to personal consumption expenditures on Friday 30 May.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
Strong recovery in mid-late April moderated fairly quickly, with somewhat lower volume and volatility for most of May so far. The 20 SMA is a potential dynamic support but not a very strong one; the 50 SMA from Bands might be more reliable as a dynamic support. The influence of fundamentals seems generally negative and 60c looks like a strong static resistance, having been tested three times, so the upside might be limited for NZDUSD for now.
55c would be the obvious medium-term target for sellers as last month’s low, but a new downtrend from here would probably depend on the Fed’s minutes late on 28 May and American second estimate GDP the next day being received broadly positively. Traders are also looking ahead to personal consumption expenditures on Friday 30 May.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.