NZDUSD technicals
The NZDUSD is on its fourth straight day of losses, currently down -0.83%, making it the biggest mover against the US dollar today. Risk-off sentiment and renewed tariff concerns are weighing on the pair. President Trump announced an increase in China’s tariffs from 10% to 20% in response to fentanyl concerns. Additionally, he confirmed that tariffs on Canada and Mexico will be enacted for similar reasons, despite ongoing border security efforts from both nations.
Technical Breakdown: Key Support Levels in Play
The downside momentum strengthened after breaking below a key swing area between 0.5692 and 0.5704. Earlier in the Asian-Pacific session, buyers initially stepped in at the 38.2% retracement of the February range (0.56737), providing temporary support. However, once that level gave way, the selling pressure intensified as buyers turned into sellers.
The price has since extended to the 50% midpoint of the February trading range at 0.56434. The day’s low briefly dipped to 0.5641, a few pips below the 50% retracement, but downside momentum has stalled, leading to some consolidation over the last 45 minutes.
Battle at a Key Technical Zone
Buyers are attempting to defend the 50% retracement level, trying to slow the downward move and prevent further losses. A break below 0.5641 with sustained momentum could open the door for additional downside pressure. Conversely, holding above this level may spark a short-term rebound, as traders reassess risk and sentiment shifts. The battle between buyers and sellers at this critical technical zone will dictate the next move for NZDUSD.
On the topside, there is not a lot of resistance since back near the 38.2%. However, if there is a bounce, the level at 0.56737 would be new resistance.
On the downside, the swing low from Feb 13 comes in at 0.56214. The 61.8% of the Feb. range is at 0.5613.
PS The biggest % move for the NZDUSD in 2025 is 0.87% on January 10. The move today is rivaling that move lower.