Intraday Market Analysis – NZD Sees Bearish Whipsaws

August 18, 2021

NZDUSD tests major support

The New Zealand dollar struggles as the RBNZ postpones its rate hike against expectations.

The pair had failed to push above the supply area near 0.7100 from the daily chart. The RSI’s double top was a sign of overextension.

The sell-off below the psychological level of 0.7000 and then 0.6960 indicates that sentiment has turned sour. A recovering RSI could be an opportunity to sell into strength.

A break below 0.6890 may extend the sell-off towards 0.6700. 0.7030 is the first resistance in case of a rebound.

Free Reports:

Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter

Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.

AUDUSD falls through support

The Australian dollar fell after the RBA minutes tempered the taper optimism amid COVID-19 restrictions.

The pair has been under pressure at the 20-day moving average. The drop below 0.7290 may have resumed the downtrend after a four-week-long consolidation.

Strong bearish momentum is an indication of high turnover between buyers bailing out and sellers piling in. 0.7170 would be the next target. The key resistance at 0.7340 will likely cap a limited rebound, while the RSI climbs from the oversold area.

XAUUSD rises to key resistance

Gold extended its recovery supported by a retreat in US Treasury yields.

The price has recouped most losses from the previous sharp liquidation. A break above the intermediary resistance at 1762 has confirmed strong buying interest.

Buyers will need to close above the origin of the firesale and the psychological level of 1800 to seal the deal in their favor. Then 1830 would be the last hurdle before a full-blown reversal.

A repeatedly overbought RSI may cause a temporary pullback with 1755 as key support.

By Orbex