NZD/USD Forecast Today 25/10 Bounces From Big Figure (Chart)

(MENAFN- Daily Forex)

• In my daily analysis of the NZD/USD pair, the first thing I notice is the strong support near the crucial 0.60 level.
• This is a large, round, and psychologically significant figure that has shown promise multiple times in the past.
• With this in mind, it looks like the market is trying to form a base.
• However, while a rally may be attempted from here, I believe there are still too many factors preventing the New Zealand dollar from outperforming the US dollar.

Technical Analysis

The technical analysis is pretty dire for this pair, but it is worth noting that the 0.60 level is offering support so far. I do think there are certain amount of options barriers, and therefore it could have an influence on the spot currency market. However, even if we do rally from here, I think that there are plenty of areas along the way that could offer resistance. The 0.61 level above could offer a significant amount of resistance, especially now that we have the 200 Day EMA hanging about that area.

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The size of the candlestick is somewhat strong, but it has not wiped out the nasty candlestick from the previous session. Even if we do, I think there's enough noise that eventually we will run out of momentum. However, if we were to break down below the 0.60 level, then I think this is a market that could drop down to the 0.59 level. After that, then we have the 0.5870 level, which was the most recent swing low. All things being equal, this is a market that is very negative, and it probably will continue to be so considering that recently the Reserve Bank of New Zealand has cut 50 basis points, following the Federal Reserve and eviscerating any fundamental momentum that the RBNZ may have had over the Federal Reserve.

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