The NZD/USD pair has been declining since the 21st of January 2016, with the sellers leading the price from as high as 0.6559 to as low as 0.6425.
During the course of the day on Monday, the pair initially advanced up to 0.6532, but found enough resistance to turn things back around and reach the daily lows of 0.6461. Today, the pair bottomed at 0.6424 in the wake of Fitch’s announcement that the New Zealand outlook fell from positive to stable, but soon bounced up to 0.6490 to then stabilise. In the event that the sellers manage to regain control and push the pair below 0.6465, the price could go down to 0.6452 and 0.6424 respectively.
On the flip side, in the scenario where the buyers keep exerting strong pressures and the price breaks above 0.6508, the pair could escalate up to 0.6525 and 0.6559 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.