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NZD/USD: Bears relentless amid risk-off, tests 50-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The NZD/USD pair is seen extending losses as we progress towards the late-Asian, with risk-appetite smashed on the back of a renewed sell-off in oil and stocks.

    NZD/USD breaks through 100-DMA support at 0.6629

    Currently, the NZD/USD pair slips -0.39% to 0.6619, hovering within a striking distance of session lows posted at 0.6613, where the 50-DMA intersects. The bulls lost ground completely after the oil prices resumed the bearish momentum, with markets preferring to hold safe-havens at the expense of higher-yielding currencies such as the NZD. The decline in the oil prices sparked a fresh risk-aversion wave across the financial markets and curbed the demand for riskier assets.

    Amid a lack of fresh fundamental triggers in Asia, the bird continues to follow the sentiment on the global equities, while oil-price action is likely to lead markets going forward. Calendar-wise, we have the much-awaited US CPI data on the cards, which may have major impact on the NZD/USD pair.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6700/05 (round number/ daily R2), above which it could extend gains to 0.6755/63 (Feb 5 & Jan 5 High) levels. To the downside immediate support might be located at 0.6610/00 (20-DMA/ psychological levels) and from there to 0.6587/71 (200-DMA/ daily S2).
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