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NZD/USD bulls move out of the way to 100 4hr SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - NZD/USD is starting to lose any conviction that was left on the 0.68 handle at the start of the week with supply taking the bird of its perch and to the lowest levels since Xmas Eve when the bird managed to break up from mid week supply at 0.6840 to test lows of 0.6760.

    A break below the 0.68 handle, with current lows of 0.6802 from highs of 0.6836 exposes the 100 SMA on the 4hr chart at 0.6774. While there is little fundamentally to directly watch for in the bird ahead of the GDT price index, there are risks associated to the unit and one to watch for will be oil that is already showing us some action today with the weekend events in the Middle East. Later in the week we will keep an eye on FOMC minutes and Nonfarm Payrolls as other main events.

    NZD/USD levels

    Technically, NZD/USD is testing the 100 SMA on the 4hr at 0.6775 after being capped at the 200 DMA at 0.6838 within the downtrend of 0.76. A break of the psychological 0.70 handle remains a key objective to close the gap at 0.7107. A reversal looks in at the 20 DMA at 0.6766 below S3 at 0.6791. We are well below the pivot of 0.6836 and risks remain mounted to the downside until a recovery through R3 at 0.6859 on the short term sticks.
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