Risk sentiment took its toll on the New Zealand Dollar (NZD) off the weekly open dropping to 0.5630 (1.7770) against the Euro (EUR) as it continued downside moves. The technical bear channel which has been held since March 2022 looks well formed to keep the kiwi on the backfoot for a while yet. Especially when central bank policy supports further buying in the EUR based on more ECB tightening required. The EUR should stay well supported on dips and could retest the support area around 0.5400 (1.8500) over the coming weeks. NZ quarterly inflation Wednesday should tick lower.
Current Level: 0.5630 (1.7761)
Resistance: 0.5820 (1.8020)
Support: 0.5550 (1.7180)
Last Weeks Range: 0.5610-0.5713 (1.7502-1.7824)