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20 Aug 2013
NZD/USD unstable below 200-day SMA ahead of RBNZ Wheeler speech
FXstreet.com (New York) - The NZD/USD foreign exchange rate could not reverse staunch losses yesterday, with the pair now tasked with digging itself out of an early week hole Tuesday.
Later today, RBNZ Governor Wheeler is due to speak at 2:00 pm New Zealand time or 2am GMT on “Explaining to role of macro-prudential policy. The RBNZ has prepared the framework to introduce macro-prudential tools to cool an over-heating housing market. It is fair to say there is little detail left to be divulged and the market will be looking for hints from Wheeler on the set of conditions the RBNZ is waiting for and the possible timing for the introduction of LVR restrictions.
Technically speaking, the NZD/USD is now operating at 0.8068, virtually unchanged off its opening during Asian trading. With the NZD/USD well entrenched below its 200-day SMA, the short-term outlook looks rather bleak, with supports attempting to slow a decline at 0.8058 (August 16 low), ahead of 0.8037 (July 30 high), and 0.8002 (August 15 low).
NZD/USD strategic bias
According to the Technical Analyst Team at ICN.com, “Yesterday, the NZD/USD was attempted unsuccessfully a major resistance area and pivotal level, which was the neckline for an inverted head and shoulders pattern. What transpired next was a massive drop lower below the 0.8100 level, weighed by a negative MACD and linear regression indicators. A closing break in negative territory erased the short-term possibility of an uptrend, which fails to cancel a short-term bearish outlook.”
Later today, RBNZ Governor Wheeler is due to speak at 2:00 pm New Zealand time or 2am GMT on “Explaining to role of macro-prudential policy. The RBNZ has prepared the framework to introduce macro-prudential tools to cool an over-heating housing market. It is fair to say there is little detail left to be divulged and the market will be looking for hints from Wheeler on the set of conditions the RBNZ is waiting for and the possible timing for the introduction of LVR restrictions.
Technically speaking, the NZD/USD is now operating at 0.8068, virtually unchanged off its opening during Asian trading. With the NZD/USD well entrenched below its 200-day SMA, the short-term outlook looks rather bleak, with supports attempting to slow a decline at 0.8058 (August 16 low), ahead of 0.8037 (July 30 high), and 0.8002 (August 15 low).
NZD/USD strategic bias
According to the Technical Analyst Team at ICN.com, “Yesterday, the NZD/USD was attempted unsuccessfully a major resistance area and pivotal level, which was the neckline for an inverted head and shoulders pattern. What transpired next was a massive drop lower below the 0.8100 level, weighed by a negative MACD and linear regression indicators. A closing break in negative territory erased the short-term possibility of an uptrend, which fails to cancel a short-term bearish outlook.”