NZDUSD Technical Forecast


The US dollar staged a solid comeback from more-than three-year lows, triggering a fresh selling-wave in the NZD/USD pair. The 17 January NZDUSD Technical Forecast discloses more.

17 January, GKFX– Having failed several attempts to regain the 0.73 handle, the NZD/USD pair came under intense selling pressure, mainly driven by the resurgence of the US dollar demand across the board.

Key Quotes

  •  DXY rebound knocks-off Kiwi.
  • Risk-aversion undermines.
  • Awaits US & China data.

NZD/USD finds support near 0.7285

The US dollar staged a solid comeback from more-than three-year lows versus its major rivals, triggering a fresh selling-wave in the NZD/USD pair while persisting risk-off market profile, reflected by negative Asian equities and subdued Treasury yields amid fresh North Korea headlines also add to the weight on the higher-yielding currency NZD.

Moreover, a profit-taking slide from the four-month top also cannot be ruled out, as investors gear up for the Chinese macro releases due tomorrow, with the main focus on the GDP figures. The NZD has used a liquid proxy for bets on China, as China is New Zealand’s top trading partner.

However, the losses may remain capped, in the wake of rising dairy prices and ongoing oil-price rally. Ahead of the China data dump, the pair awaits the US industrial production data and Fed Beige book release for fresh near-term trading opportunities.

17 January NZDUSD Technical Forecast

The pair finds next resistances at 0.7315 (4-month tops), at 0.7350 (psychological levels), 0.7391 (classic R3). Meanwhile, the supports are located at 0.7228 (10-DMA), 0.7200 (zero figure) and 0.7160/52 (200 & 20-DMA).

Disclaimer

This article “17 January NZDUSD Technical Forecast” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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