NZD/USD halts correction near key support at 0.6640

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - NZD/USD is seen oscillating back and forth in a 20-pips range over the last hours, having bounced-off strong support near 0.6640 region, the confluence of 50 & 100-DMA.

    NZD/USD remains capped below 0.67 handle

    Currently, the NZD/USD pair trades 0.08% higher at 0.6670, having posted day’s high at 0.6685 and day’s low at 0.6642. The Kiwi’s retreat from four-week tops found fresh bids at 50-DMA and from there the prices climbed back higher to hit daily highs, before meeting fresh supply and inching lower, where it now wavers.

    The NZD/USD pair manages to remain on the bids, although lacks momentum as the mixed sentiment in Asia amid broad based US dollar recovery caps the gains in the bird. The USD index now rises 0.15% to 97.38, recovering slightly from fresh three-month lows struck at 96.89 in the last US session. Asian markets outside Japan are seen cheering the overnight rebound in the commodities’ prices, while oil prices trade mixed amid lack of fresh fundamental trigger.

    Earlier on the day, RBNZ Assistant Governor John McDermott talked down the domestic currency, which also added to the retreat in the NZD/USD pair. McDermott noted that the central bank would be "happier" with a lower NZD.

    Looking ahead, the black gold will continue to drive the currency markets, while the focus now remains on the upcoming US unemployment claims and factory orders data for fresh cues on the USD.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6699/0.6700 (Feb 3 High/ round number), above which it could extend gains to 0.6729 (daily R1) levels. To the downside immediate support might be located at 0.6644/ 42 (100 & 50-DMA) and from there to 0.6602/00 (200-DMA/ psychological levels).
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