The NZD/USD pair has been trading downwards since the 9th of June 2016, with the sellers driving the price from as high as 0.7145 to as low as 0.7022.
The pair went back and forth on Monday, reaching the daily high of 0.7080 and low of 0.7030 to end the day at 0.7056. Today, the major continued to oscillate, currently trading at 0.7034.
With several central bank monetary policy decisions this week, investors are jittery are shifting away from riskier asset classes such as stocks and commodities, driving commodity currencies like the New Zealand dollar lower.
Going forward, market watchers will turn their focus to the release of U.K. inflation data and U.S. retail sales that could drive risk sentiment.
In the event that the price breaks above 0.7053, the pair could reach 0.7085 and 0.7145 in extension.
Alternatively, on a subsequent break below 0.7022, the pair could find support at 0.6996 and 0.6964 respectively.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.