NZD/USD faded at the 1hr 200 sma at 0.7157

NZD/USD has been on a recovery from the lows of 0.7087 and made a fresh high of 0.7158, meeting the 200 sma on the 1hr sticks.

Nonfarm payrolls vs the bigger picture - ANZ

NZD/USD has been making a recovery since last week's nonfarm payrolls while the dollar consolidates otherwise and commodity prices supported on a rally in oil of 2% on the back of the OPEC news. Elsewhere, markets are looking ahead to the RBNZ who are tipped to cut interest rates following the RBA's recent decision to cut that was also widely expected in an attempt to weaken the Aussie and get inflation back on track towards and within their 2-3% target bracket. The RBNZ Shadow Board has recently recommended a cut in the OCR rate by 25bps, underpinning the sentiment that the Central Bank is about to ease rates yet again.

How volatile has NZD/USD been?

2-Standard Deviation Volatility Bandwidth is presently at 46 pips and expanding on the hourly NZD/USD chart, while the ATR (14) is currently at 12 pips. 2-Standard Deviation Volatility Bandwidth is at 368 pips and shrinking on a daily chart. Over the last four weeks, the average movement for the present session has been 12 pips per hour. Further, today’s peak period for volatility was between 21:00-22:00 GMT, which saw an average movement of 26 pips over the previous four week period.
 

What price levels and patterns have to be considered?

Spot is presently trading at 0.7145, and next resistance can be seen at 0.7146 (Yesterday's High), 0.7154 (Hourly 200 SMA), 0.7162 (Daily High), 0.7162 (Daily Classic PP) and 0.7169 (Hourly 100 SMA). Next support to the downside can be found at 0.7139 (Daily Open), 0.7138 (Weekly Low), 0.7137 (Hourly 20 EMA), 0.7135 (Daily Low) and 0.7131 (Daily 20 SMA).