NZD/USD struggles justify options market optimism ahead of key central bank events
One-month risk reversal (RR) of NZD/USD, a gauge of calls to puts, braces for the biggest weekly upside in six weeks, also snapping the two-week downtrend while flashing +0.2000 figures for the current week, per the data source Reuters.
Even so, NZD/USD prices fade the recent bounce off intraday low, not to forget keeping the previous day’s pullback from the weekly top, down 0.05% intraday around 0.6635.
Technically, NZD/USD prices step back from a confluence of the 10-DMA and a downward sloping trend line from January 13, around 0.6635-40 at the latest.
The pullback moves join bearish MACD signals to suggest further grinding towards the south.
However, a weekly support line near 0.6600 restricts the quote’s immediate downside.
On a broader front, global markets turn cautious ahead of the monetary policy meetings of the European Central Bank (ECB) and Bank of England (BOE).
NZD/USD: Dialy chart
Trend: Further weakness expected