NZD/USD headed for S1 with 1hr RSI giving green light?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD has been pressured along with its Aussie counterpart in a commodity bloc sell-off as oil continues to fall and markets are starting pay close attention.

    The bird was making good tracks in its recovery from the 0.6420's lows of the last third of November's business scoring highs of 0.6658 but supply has taken the bird down to test the 200 SMA on the 4hr sticks on two occasions this week. The Oil sector is awash in supply on OPEC with new lows in Brent below $40 and WTI testing $36bbl. China also is a troublesome area as the trade surplus remains and exports continue to be very problematic as displayed in last nights trade balance data. Today we get CPI's for China as well.

    NZD/USD levels

    Technically, S1 is located deep at 0.6578 at the 100 4hr SMA. The 200 SMA on the same time frame is supporting the bird currently at 0.6610. A break of the 20 DMA at 0.6575 meeting the aforementioned S1 would be significant while RSI (14) on the 1hr sticks is at 46 and declining and offers room to the downside yet in the near term.
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