NZD/USD bulls ran out of Red Bull?

By FXStreet FXStreet (Barcelona) – NZD/USD as flipped on its head, with the bird running out of ‘Red Bull’, losing its wings, and now the bears break below the 20 SMA on the hourly chart fishing for further offers to break 0.6820 support for a run at the 50 SMA on the same time frames, trading at 0.6791 currently.

NZD/USD garnered some immediate demand on the back of CPI’s, but the sellers came in and stamped on the bulls efforts while markets simply do not regard the RBNZ in a position of being able to hold off the headwinds for much longer and are pricing in another a rate cut by the end of the year. The commodities sector will come under even more scrutiny as will China over the next few weeks, from both the respect of the RBNZ and FOMC.

NZD/USD levels

Technically, NZD/USD has failed at 0.6890 resistance, but remains in a bullish position while trading pivot of 0.6742 today. R2 is 0.6940 on any further demand through the key 0.6890 level ahead of R3 at 0.7064. The 50 SMA at 0.6779 offers support ahead of the pivot and 0.6700. RSI points to consolidation.
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Source:: FX Street