NZD/USD: downside in full swing after GDT price index

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    NZD/USD has moved to the downside and below the 200 sma on the hourly chart that is located at 0.6580 currently with lows of 0.6547 so far.

    The move comes as the price continues to drift sideways within a relatively wide range, given the volatility of outcomes in events that are taking place this month, one of which today has been the GDT price index, yet again falling albeit not as heavily as the last auction. The result arrives as -2.8% vs -7.4% prior and was the 4th drop in a row. There had been an initial pop higher, but the downside quickly resumed as the data does not support a recovery in New Zealand along with the commodity sectors glut in supply

    NZD/USD levels

    Technically, the price is stepping out of the channel and moving below channel support of 0.6560, testing previous resistance of the end of Jan channel (S3) with a target of 0.6480.

    The price is well into bearish territory on thje short-term sticks with the pivot left behind now at 0.6649 and RSI(14) on the 4hr sticks at 38.78 offering further to go before oversold territory at the 0.65 handle.
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