The New Zealand Dollar may be the weakest among the other major currencies and may still be under heavy selling pressure in a non-friendly atmosphere in 2020.
Kiwi selling interest continues to increase despite an optimistic view of the market in traders’ commitment reports based on last week’s performance. The situation is less than conducive, and the fluctuations associated with the Covid-19 outbreak will likely show further downside risks for high-beta currencies, such as the New Zealand Dollar. Although there is a potential weakness of the US Dollar in response to the anticipated rate cut, the downside potential of this beta currency against the US Dollar could be reduced.
The Daily time period has returned some losses from last week, after opening below the low price of October 2019. Prices are at a 1-year bottom, with confirmation from the oversold RSI and MACD histogram depth not yet indicating a reversal.
NZDUSD, H4.In the 4-hour timeframe, the price action is still seen to be in a downward structure, with MAs sloping downwards above the price. RSI is below 50 and MACD lines present the intraday price reversal of the past 2 days. Overall, negative momentum dominates. The Resistance levels from the psychological approach are 0.6325; 0.6375 and 0.64250, while Support is at 0.6175, 0.6125 and 0.6075.
Ady Phangestu
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