NZD/USD: Rebounds are likely to remain limited - Natixis

The NZD/USD pair’s failure to break out above the major long-term resistance at 0.7560 (quarterly Bollinger moving average) at the end of July triggered a sharp pullback, explains the analysis team at Natixis.

Key Quotes

“With the pair having broken below 0.7205 (weekly Bollinger moving average), this further exacerbated selling pressures this week, for which reason caution is in order.”

“Rebounds are likely to remain limited. Watch out rather for another pullback towards 0.7090-0.7110 (monthly Bollinger moving average). A break below these support levels would instil new downward momentum towards 0.7055 before 0.70 and 0.6938-0.6950. Resistance levels are located at 0.7205, around 0.72720.7284, at 0.7381, around 0.75-0.7514 and around 0.7560-0.7580.”