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NZD/USD breaches 1h 200-SMA support, eyes 0.6600

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - NZD/USD extends its bearish momentum into a third-day today, with the renewed bout of selling interest triggered by negative sentiment on the Asian markets and China slowdown worries.

    NZD/USD heavy, heading towards Tuesday’s low

    Currently, the NZD/USD pair trades -0.33% lower at fresh session lows at 0.6623, once again breaching hourly 200-SMA support at 0.6633 levels. The Kiwi stalled its recovery just belo 5-DMA at 0.6644 and returned to the red as the bears fought back control amid wide-spread risk-aversion and temporary rise in the Chinese inflation.

    The NZD/USD pair also remains pressured on the back of the recent rout in oil prices, which weighed on the entire commodities space and dented the sentiment around the resource-linked kiwi. Markets now shift their attention to the RBNZ cash rate decision due later tonight and are pricing in around a 50% possibility of a rate cut to 2.50%.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6644 (50-DMA), above which it could extend gains to 0.6677 (5-DMA) levels. To the downside immediate support might be located at 0.6610/00 (Dec 8 Low/ round number) below that 0.6541 (100-DMA).
    For more information, read our latest forex news.

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