NZD/USD fills up bearish opening gap, 0.65 on sight

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - NZD/USD’s recovery from multi-month lows found fresh legs and the bulls jumped back on the bids, now heading for a test of 0.65 handle.

    NZD/USD tracks recovery in commodities

    Currently, the NZD/USD pair gains 0.22% and trades near fresh session highs printed at 0.6480 in last hours. The Kiwi caught a fresh bid tone and fills up the bearish opening gap, taking on the recovery from fresh three-month lows struck at 0.6381 on Friday. The recovery seen in the NZD/USD pair is largely on the back of a minor pullback seen in oil prices from fresh 12 year lows around $ 28.50 levels, after Western sanctions on Iran were finally lifted over the weekend.

    Moreover, the Kiwi tracks its OZ neighbour higher, with the Aussie staging a solid comeback in tandem with the copper prices. In the day ahead, focus will remain on stocks and oil amid light trades as the US markets remain closed on a public holiday. While in the week ahead, the Chinese dataflow combined with the GDT and CPI figures from New Zealand will provide fresh incentive on the NZD/USD pair.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6498/ 0.6500 (1h 100-SMA/ round number), above which it could extend gains to 0.6555 (1h 200-SMA) levels. To the downside immediate support might be located at 0.6433 (daily pivot/ 1h 20-SMA) below that 0.6411 (daily low).
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