NZD/USD 200 dma a tough resistance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    NZD/USD is currently trading at 0.6627 with a high of 0.6638 and a low of 0.6627

    NZD/USD was slightly offered on the releases of the PPI numbers that arrived as input -1.2% vs 1.6% prior for Q/Q Q4 and output, -0.8% vs 1.35 prior. The price has been better bid for the most part, extending the recovery from below 0.6560 and breaching the 20 sma at 0.6633 currently at time of writing. The high was 0.6650. FOMC minutes drag on the US dollar.

    The FOMC minutes gave a little downside to the greenback of which the bird was able to enjoy. Although there was nothing significant new in the detail of the minutes in comparison to what Yellen voiced in her testimonies recently, the minutes were underpinning the uncertainty and bearish outlook for the Global economy.

    The US cannot take off with the deflationary pressures of the rest of the world on its coat tails and while the data of late has been better, there are still cracks in the economy that could be leading the US into recession as the conditions appear not too dissimilar to recessions of the past.

    NZD/USD levels

    The 20 dma at 0.6580 is fending off the downside pressures on bearish attempts to break the recovery. The 200 dma stands at 0.6674 and is proving a tough resistance ahead of the recent highs 0.6748. The lows of 0.6555 are below the pivot of 0.6598. The key downside objective is 0.6380 and in the vicinity of R3.
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