NZD/USD loses its bullish vigor quickly, goes flat once more
- The Kiwi can't seem to pull itself up, recoveries remain limited.
- RBNZ equally likely to cut rates as lift them sometime in 2019, if not sooner.
The NZD/USD is down slightly from an Asia session high of 0.6938, and is trading into 0.6922 just ahead of the European markets for Friday.
It's been a flat week for the Kiwi with little hope of a bullish lift-off, but NZD traders will be happy that the recent declines have stopped, at least for now. The Kiwi is down almost 6.4% from April's high of 0.7395, and the NZD/USD has been slow to generate a bullish correction.
This week was a fairly limited showing for the Kiwi, and that's probably a good thing for NZD traders; economic data has continued to slump, and the Reserve Bank of New Zealand (RBNZ) is widely expected to hold off on any rate increases until well into 2020, with some market participants believing there are even chances of a further rate cut.
NZD/USD levels to watch
As noted by FXStreet's own Ross Burland, "support comes in at 0.6906, below the 10-D SMA at 0.6919, ( 0.6850 below there). To the upside, 0.6950 and 0.6980 mark key levels of interest, (21-D SMA 0.6969). The next upside key target beyond there is located at 0.7080. The NZD/USD has taken out the 200-month moving average resistance at 0.6980. However, weekly technicals remain bearish and RSIs are biased to the downside. Below 0.6850, 0.6780 comes as next downside target meeting the lows of mid-Nov 2017."