NZD/USD: minor recovery chipping away towards 0.6350

By FXStreet FXStreet (Guatemala) – NZD/USD is currently trading at 0.6326 with a high of 0.6345 and low of 0.6293.

NZD/USD is holding the 0.63 handle but supply has emerged ahead of the mid point of the handle again, pressuring the 200 SMA at 0.6323 into submission. A break of the 200 SMA on the hourly chart would coincide with the recent price action within the sideways/ascending channel formed in consolidation and in a minor recovery of the downside from the 0.64 handle post the dovish RBNZ.

This week is all about the FOMC but the RBNZ leaves a dark cloud over the board as it is, while they anticipate that there needs to be more downside in the bird and how they have left the door open to substantial rate cuts in coming months, data dependent.

NZD/USD capped at channel resistance

Technically, 0.6340/50 is capping upside attempts in the bird and pressures remain to the downside with a bearish bias across the indicators. 0.64 remains the upside target while to the downside, 0.6280 and 0.6250 guards 0.6220.
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Source:: FX Street