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NZD/USD drops sharply from 2-month peak, below 0.6800

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The offered tone surrounding the NZD picked-up pace in the early European trades, knocking-off NZD/USD to fresh session on 0.67 handle.

    NZD/USD eyes hourly 50-SMA at 0.6753

    Currently, the NZD/USD pair drops -0.54% near fresh session low of 0.6778, failing several attempts to extend beyond 0.6800. The Kiwi remains heavily offered as markets resort to profit-taking on their NZD longs after last week’s four consecutive sessions of gains to fresh eight-week highs.

    The renewed selling pressure seen in the NZD/USD pair can be attributed to the pause in the oil rally, while subdued trading seen on the Asian equities also collaborated to the weakness in the bird.

    Looking ahead, all eyes remain on the RBNZ meeting as the US docket remains fairly data-dry. Markets are expecting the RBNZ to slash rate further in a bid to stimulate growth and domestic demand.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6800/04 (round number. Daily High), above which it could extend gains to 0.6823/46 (Mar 4 High/ Jan 4 High). To the downside immediate support might be located at 0.6756/53 (5-DMA/ 1h 50-SMA) and from there to 0.6691 (1h 100-SMA).
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