The New Zealand Dollar (NZD) was looking good 10 days ago when it posted a 7-week high of 0.5665 (1.7650) against the Euro (EUR). It’s been all downhill since for the NZD retracing moves to 0.5550 (1.8030) Monday- most of this based on risk averse sentiment and downgraded global forecasts. Key Fib levels are signalling possible moves back towards a retest of the 23.6% resistance point at 0.5600 (1.7865), however most off this will depend on Friday’s European Central Bank (ECB) cash rate announcement when markets expect the ECB to cut from 4.25% to 3.65% resuming its easing policy from the high at 4.50% in April.
Current Level: 0.5561
Support: 0.5520
Resistance: 0.5660
Last week’s range: 0.5560- 0.5661