NZD/USD awaits the Chinese showdown

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD has been consolidating on the lower end of the 0.66 handle in a 50 pip range with the 50 SMA on the hourly sticks coming in as a resistance at 0.6642 currently.

    The antipodeans have had a terrible start to 2016 caught up in the Chinese crisis and until Chinese authorities can get a grip on the market to try and find a solution for some stability, the downside is favoured. Domestically, we don't have anything on the calendar for New Zealand, but all attention will stay with China dominating the markets. Look for the yuan fix and stocks opening. In the US, nonfarm payrolls will then take over the show.

    NZD/USD levels

    Technically, NZD/USD eyes the 100 DMA at 0.6578 on a break below the lows of 0.6616 to test the 0.6600 level. A full breakout to the downside has the 0.6428 as a target and the Nov low as last defense for a full correction towards the Aug low of 0.6220. Only a recovery through the 200 DMA at 0.6825 would alleviate the downside pressures and 0.68 could prove to be a strong psychological resistance.
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