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NZD/USD keeps falling, 200-DMA eyed?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The NZD/USD pair reverses almost half of the previous rebound and extends further to the downside, with bears back in control amid risk-off market profile.

    NZD/USD sold-off near hourly 100-SMA


    Currently, the NZD/USD pair trades -0.37% lower at fresh session lows of 0.6610, looking to test the 200-DMA placed at 0.6595. The Kiwi broke the consolidation phase and ran through fresh offers at Tokyo open as risk-aversion re-emerged on the back of the extension of yesterday’s losses in the Japanese stocks. Japan’s Nikkei is down -2.30%, while Australia’s ASX drops -2.19%.

    Moreover, the selling pressure appears to intensify after the ANZ Monthly Inflation Gauge showed that inflation in the NZ economy rose 0.6% in January, slightly lower than is typical for this time of the year. Over the three months to January, the gauge rose 0.5%. While sharp declines in its OZ neighbour, Aussie, also acts as a drag on the bird.

    Meanwhile, the NZD/USD pair remains completely unperturbed by broad USD selling on falling Fed rate hike bets this year, as risk sentiment continues to drive the Antipodes. Ahead in the day, all eyes remain on the Fed Chair Yellen’s testimony and US crude supply data for fresh momentum on the pair.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6638/46 (100-DMA/ daily high), above which it could extend gains to 0.6663/68 (Feb 8 & Jan 7 High) levels. To the downside immediate support might be located at 0.6595/86 (200-DMA/ 1h 200-SMA) and from there to 0.6537/07 (20-DMA/ Feb 3 Low).
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