NZD/USD extending recovery beyond 100-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The NZD/USD pair fluctuates between gains and losses amid a volatile Asia, with risk-off trades persisting in full swing as global equities and oil continue to fall.

    NZD/USD recovering from below 200-DMA

    Currently, the NZD/USD pair drops -0.40% to 0.6660, having regained both 200 & 100-day MAs. The Kiwi fell sharply lower this session as a renewed bout of risk-aversion gripped markets after the European stocks plunged alongside oil, and refuelled flight to safety across the financial markets. Markets sought safe-havens and gave up risky bets such as the Kiwi pair in a bid to protect their capital in times of global market turmoil.

    In additions, lingering tensions between South Korea and North Korea with regard to the recent nuclear test conducted by the latter, also spooked investors and weighed on higher yielding assets across the board.

    Moreover, heavy losses seen in the black gold further dragged the resource-linked kiwi lower. However, over the last hour, the NZD/USD pair attempts a minor-recovery and aims to regain 0.67 handle.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6717/35 (daily R1 & high), above which it could extend gains to 0.6755/63 (Feb 5 & Jan 5 High) levels. To the downside immediate support might be located at 0.6614/ 0.6595 (1h 200-SMA/ 200-DMA) and from there to 0.6586/61 (daily low/ Feb 9 Low).
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