NZD/USD flirts with 100-DMA support

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The NZD/USD pair wiped out gains seen in Asia and breached the crucial 100-DMA support placed at 0.6630, despite the solid gains seen in the oil prices.

    NZD/USD dragged lower on profit-taking

    Currently, the NZD/USD pair trades almost unchanged at 0.6630, having failed to surpass 0.6650 levels on its recovery from session lows reached at 0.6627. The Kiwi trades subdued and tries hard to regain lost footing after the bird was hit by the daily R1 placed at 0.6670 and dropped below 100-DMA thereon. Markets resorted to profit-taking after the recent strength as we head towards the key US macro releases due today and tomorrow. The US calendar offers the US weekly claims and Philly Fed index today, while the inflation figures will be reported tomorrow.

    Moreover, the NZD/USD pair followed its OZ counterpart lower, completely ignoring the rally in oil prices. The Aussie remains pressured after the Australian jobs report disappointed markets big time, while the below estimates Chinese CPI data also weighed on the sentiment.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6700/15 (round number/ daily R2), 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 0.6620/18 (daily low/ 50-DMA) and from there to 0.6600 (20-DMA/ psychological levels).
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