NZD/USD extends losses in tandem with oil, nears 0.6700

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bearish pressure surrounding the New Zealand dollar strengthened post-European open, knocking-off NZD/USD to session lows just ahead of 0.67 barrier, before recovering some ground over the last hour.

    NZD/USD drops to lows near hourly 100-SMA

    Currently, the NZD/USD pair trades -0.30% at 0.6724, struggling to take on the recovery from 0.6711 session lows. The Kiwi remains offered this session as the US dollar extends its post-ECB recovery versus a basket of currencies amid improved risk-sentiment backed by rallying European equities. The USD index rises 0.21% to 96.44, extending higher from 96.13 lows.

    The sell-off across the commodities-currencies can be attributed to the fresh selling seen in the oil prices after last week’s upsurge. Both crude benchmarks are down nearly 2%, while the Kiwi emerges the worst performer amongst the commodities-currencies bloc.

    Nothing of note for the pair in terms of economic data and hence, attention now remains on the RBNZ Governor Wheeler’s speech due later tonight.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6772/76 (daily R3/ Mar 11 High), above which it could extend gains to 0.6800 (psychological levels). To the downside immediate support might be located at 0.6707/00 (5-DMA/ round number) and from there to 0.6642/22 (100 & 200-DMA).
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