NZDUSD makes a break to the downside as “risk off” flows send the pair lower.

At the beginning of the day right this moment, New Zealand introduced a 30+ 12 months excessive for y/y CPI, with broadly-based value rises throughout sectors within the economic system. The implication for the Reserve Financial institution of New Zealand is affirmation of price hikes nonetheless to return and doubtless at even sooner price to a good greater finish level (information dependent in fact)

Did the NZDUSD discover a bid on the information?

Nope. The pair has been transferring decrease and simply reached a brand new low for the day. The present value is at 0.6586.The low reached 0.65744.

The low has additionally taken the worth to the bottom stage since October 21, 2020, and additional away from a downward sloping development line on the each day chart at 0.6658. It’ll now take a transfer again above that development line to offer patrons some reduction. Absent that on the each day chart, and the sellers are extra in management.

Staying on the each day chart, the pair is trying towards lows from October 2020 at 0.6546. Under that and merchants shall be eyeing a swing space between 0.6488 and 0.6511. The 50% of the transfer up from the March 2020 low cuts throughout at 0.6466. All these ranges at the moment are in play on extra weak spot going ahead.

Pulling again and looking out on the hourly chart beneath, the pairs excessive yesterday after the FOMC, stalled proper on the falling 100 hour MA (blue line). That definitely didn’t assist the patrons, and as an alternative gave the sellers ammunition for extra promoting, and anxious the patrons.

These fears had been raised when after the CPI, the worth may barely get above the lows from Monday at Tuesday at 0.6659. The excessive reached 0.6660. Patrons gave up. The worth moved even decrease.

What subsequent?

The transfer from the 100 hour MA to the low has the 38.2% to the 50% as resistance between 0.6623 to 0.6638. Get above that stage (assuming the present low doesn’t get decrease which it may), and the dip patrons have a small win. It will take extra, however it might be a begin (with the damaged development line at 0.6658 the following goal). Absent that, and the sellers are nonetheless in management.