Buyers have Put up a Decent Fight in NZD/USD, but Long Term Trend Remains Bearish
[[NZD/USD]] has been quite resilient recently. This pair turned bullish in October, together with other risk assets, such as stock markets and the Aussie, due to the partial trade deal between US and China, which is still not official yet. Nonetheless, it helped improve the sentiment in financial markets and risk currencies rallied higher.
But, the sentiment turned negative again this month and AUD/USD turned bearish. Although, the Kiwi didn’t follow suit, having reversed higher again after retreating lower initially in the first week. The Reserve Bank of New Zealand held interest rates on hold at 1.00% in the last meeting, against anticipations of a 25bps cut, which helped the NZD as well.
So, the NZD has performed better that other risk currencies. But, the long term situation doesn’t change. The main trend is still bearish and the 100 SMA continues to provide resistance on pullbacks. This moving average reversed the price at the beginning of this month and it is providing resistance again now.
This might be a good chance to open a long term sell trade here, but if the Phase One deal is signed soon, the Kiwi will likely move higher for some more time, together with other risk assets.