NZD/USD: bearish view
NZD/USD strengthens on Wednesday, trading higher from Monday’s 3-week low of $0.7680. However, the upside still remains capped by the $0.7800 mark.
Kiwi looks strongly bearish as long as the $0.7950 resistance holds. Daily MACD divergence and oversold market conditions create space for a higher retracement, but our medium-term target lies at $0.7450.
According to ANZ analysts, rebounds are not that encouraging, so risk of yet further slippage to test $0.7600 or even $0.7455 persists. Westpac strategists agree: the Fed’s tapering signal is clearly depressive for NZD/USD and the $0.7700 barrier is at risk of giving way.
Resistance: $0.7800/10, $0.7900, $0.7950
Support: $0.7760, $0.7710/00
Chart. H4 NZD/USD