NZD/USD jumps-off hourly 200-SMA, re-takes 0.6500

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - NZD/USD manages to reverse the offered tone and appears to re-attempt 0.65 handle lows over the last hours amid a mild risk-averse environment.

    NZD/USD supported at hourly 200-SMA

    Currently, the NZD/USD pair trades -0.12% lower at 0.6485, moving-off session lows struck at 0.6470, where the hourly 200-SMA intersects. The Kiwi extends its retreat from weekly highs for the second straight session and looks to test further downside as the sentiment towards higher-yielding currencies appears not quite favourable in Asia, while the NZD tracks its OZ counterpart lower.

    Moreover, the bulls remain on the back foot heading into a central banks’ dominated week, as the FOMC decision and RBNZ policy meeting likely to remain main drivers for the Kiwi. While the sentiment around the stock markets as well as oil will continue to have significant impact on the pair in the week ahead.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6544/63 (20-DMA/ Jan 221 High), above which it could extend gains to 0.6600/01 (round number) levels. To the downside immediate support might be located at 0.6470/69 (daily low/ 1h 200-SMA) and from there to 0.6409 (Jan 21 Low).
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