NZD/USD: getting hit on Chinese crisis

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD is currently trading at 0.6628 at time of writing in heavy offers with a high of 0.6652 and a low of 0.6613.

    NZD/USD has dumped on the back of the Chinese open and stucks tumbling again by 4% now at time of writing after a 2% negative open and the Yuan fix devalued again. We now await to see if there has been intervention to support CNH and that could offer some support in an otherwise free falling market. Appetite for risk is nonexistent and the antipodeans are feeling the brunt of it, beside USD/JPY bulls that have moved out of the way on the 118 handle in a sharp loss from the mid point of the handle.

    NZD/USD levels

    Technically, NZD/USD has broken the channel support and now is in serious pursuit of the the 100 DMA at 0.6578 while making lows of 0.6613 so far in the session. A break to the downside brings in 0.6428 and the Nov low as last defense for a full correction to Aug low of 0.6220. Only a recovery through the 200 DMA at 0.6829 would alleviate the downside pressures and 0.68 may prove to be a strong psychological resistance.
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