NZD/USD: bulls taking on the 200 SMA and eye 0.64 handle

By FXStreet FXStreet (Guatemala) – NZD/USD has rallied with the general risk-on theme that is carrying on in markets this week, now breaking the hourly 200 SMA in a decisive recovery from the lows of the bearish trend.

The Nikkei is up 800 above the 18,300 mark and at +5% and this supporting the higher yielders and commodity bloc with NZD the top performer in that respect and performing strongly vs the Yen also.

However, tomorrow comes with the RBNZ and a 25 basis cut could be on the cards. Analysts at RBS explained that they expect the RBNZ will likely both trim the policy rate by 25bp and signal that further easing may be necessary. “A 25bp cut in the benchmark OCR to 2.75% is fully priced in, as is an additional 25bp cut over the next 12 months.”

NZD/USD bulls eye 0.64 handle

Technically, 0.64 may prove to be a tough resistance area and a drop back from the 200 SMA hourly that comes as resistance, 0.6220 comes as first support through th5 50 SMA at 0.6282. The downside towards 0.5910 is then exposed. a continuation in the recovery brings some congestion at the upper end ahead of the …read more

Source:: FX Street