Kiwi stalls near major resistance
09 December 2021
The NZDUSD pair erased some of this week's gains and was down 0.3% ahead of the US session on Thursday, changing hands at around 0.6785.
Later in the day, the usual Thursday's jobless claims are expected to improve slightly from the last week's figure. Then, traders will start focusing on Friday's CPI report, where inflation is forecast to accelerate further, likely prompting the Fed to tighten monetary policy even faster.
The resistance for the pair now stands at 0.6815, where August lows are. If the Kiwi jumps above that level, we could see another leg higher, targeting September lows at 0.6860. Should the pair close above 0.6860 on the daily chart, the medium-term outlook could change to bullish again.
Alternatively, if bears reappear, the support will be found at this week's lows near 0.6740. Failure to hold it could lead to a decline below 0.67.
The pair looks heavily oversold on the daily chart as it has been dropping nearly every day in November. Therefore, an oversold bounce could happen, pushing the pair above the mentioned resistances.