NZD/USD breaking lower to test 100-DMA?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The NZD/USD pair stalls a 2-day rally and edges slightly lower at Tokyo open, with the sellers well in charge amid a subdued start to the Japanese indices.

    NZD/USD hovers above hourly 200-SMA at 0.6651

    Currently, the NZD/USD pair drops -0.25% to fresh
    session lows of 0.6659, heading towards 0.6650 levels. The Kiwi printed a 3-day high in opening trades at 0.6680 and dropped sharply thereon, now consolidating the recovery in a 15-pips tight range over the last few hours. There is no major catalyst behind the move, although subdued oil prices could be one of the reasons for the lack-lustre performance in the resource-linked Kiwi.

    On Wednesday, the bird flew through the roof, staging a solid recovery from just below 0.66 handle, as the improved risk-sentiment and rallying global equities underpinned the bulls. Markets await the Chinese services PMI data as also a fresh batch of US economic news for fresh moves in the Kiwi.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6680/ 0.6700 (daily high/ round number), above which it could extend gains to 0.6735/50 (daily R2/ psychological levels). To the downside immediate support might be located at 0.6643/39 (100 & 200-DMA) and from there to 0.6600/ 0.6590 (Mar 2 Low).
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