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Kiwi has nested at 0.85 support, but for how long?

FXStreet (Moscow) - NZD/USD is marginally higher on the day at 0.8510, having previously posted a daily high at 0.8515 and a low at 0.8500.

Solid ground or quicksands?

NZD/USD is suspiciously quiet on Wednesday morning. The pair is sitting at 0.95 handle as bears need to gain strength before a new assault. The resistance of 0.8500 may prove to be rather strong. If this is the case, additional fundamental triggers would be needed to crack it. Risk-event intensive US calendar kicks off today with July ADP private payrolls data that is followed by 2Q GDP and FOMC monetary policy decision. They may result in higher USD volatility, though only clearly positive USD macrostatstics is needed to get kiwi firmly below 0.9500 on a daily basis. If bearish attempts fail, the pair may recover to 0.8549 (Tuesday open).

What price levels and patterns have to be considered?

Current price is 0.8510, with resistance ahead at 0.8512 (Hourly 20 EMA), 0.8515 (Daily High), 0.8519 (Daily Classic PP), 0.8543 (Daily Classic R1) and 0.8553 (Hourly 100 SMA).

Next support to the downside can be found at 0.8505 (Daily Open), 0.8504 (Monthly Low), 0.8504 (Weekly Low), 0.8500 (Daily Low) and 0.8494 (Yesterday's Low).

Looking at price patterns, we can see a Doji 1-hour candlestick formation, .

FOMC to come and go with little fanfare - RBS

The FOMC decision is expected to come and go with little fanfare, notes FX Strategists at RBS.
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