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NZD/USD heavy, breaks below 0.6450 – 2-month lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The NZD/USD pair remains heavily offered in the European session, extending losses for the third straight day this Thursday, as the falling European equities spooked markets once again.

    NZD/USD faces rejection at 0.6500 levels

    Currently, the NZD/USD pair drops over -1% to fresh two-month lows of 0.6445, having stalled the recovery ahead of 0.65 handle. The Kiwi failed to extend the recovery attempt from Asia into the European session, and witnessed steep losses to the tune of more than 50-pips, as the European stocks joined the global markets sell-off and smashed to four-month lows on persisting uncertainty surrounding China.

    In times of uncertainty and markets turmoil, investors flock away from higher-yielding/ risky currencies such as the Antipodes, GBP etc. Meanwhile, broad based US dollar weakness also failed to lift the sentiment around the Kiwi.

    Focus now shifts towards the US weekly claims and Friday’s retail sales as stock and oil markets movements continue to dictate.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6508/13 (daily high/ 5-DMA), above which it could extend gains to 0.6545/60 (1h 100-SMA/ daily R1) levels. To the downside immediate support might be located at 0.6424 (Nov 18 Low) below that 0.6381 (Oct Low).
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