Market news
25.11.2021, 08:34

NZD/USD: Scope for dips towards the 0.6793-0.6776 confluence zone – DBS Bank

A dovish Reserve Bank of New Zealand (RBNZ) policy outcome this week, accompanied by a bloated NZD long positioning sees the kiwi breaking under a protracted 18- month trend support. As Benjamin Wong, Strategists at DBS Bank, notes, support is arriving at a prior confluence zone pegged in the 0.6793-0.6776 zone.  

Prior support confluence just ahead

“NZD has fallen post the RBNZ risk event, as it tracks the 12 bps decline on the barometer NZD 2-year yields. Speculative accounts have built persistently long NZD positions from early September. This would cap NZD’s performance given growth potential is starting to diverge against NZ, and that the long positioning is indeed bloated at this juncture.”

“For now, NZD is still under pressure given the break of the 18-month trend support as a key support peg at 0.6930 has caved in. This brings attention to the late August lows at 0.6805.”

“NZD/USD is expected to drift lower towards the 0.6805 lows and perhaps even the 61.8% Fibonacci retracement of the run-up from June’s 0.6377 lows to the 0.7465 spike high that calibrates at 0.6793. The prior confluence zone around Fibonacci markers 0.6793-0.6776 is likely the soft-landing zone that would match the increasingly oversold readings. Look for support to hold up.”


© 2000-2021. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location