1. Hello Guest Click here to check FX Binary Point Financial Directory

NZD/USD moving into the bears lair

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD is currently trading at 0.6527 with a high of 0.6579 and a low of 0.6525.

    NZD/USD is feeling the dollar strength coming through for end of month squaring of positions and markets getting prepared for a strong dollar finish for the year anticipating the Fed raising rates at the final hour. The price has recently penetrated the 200 hourly SMA, in this trade caution might be advised. Next week picks up both in the US and NZD.

    Yellen and Nonfarm Payrolls are the highlight, while the GDT dairy auction on Tue will be closely watched because whole milk powder futures are currently predicting a rebound of 10%+ magnitude, probably in response to increasing focus on the prospect of drought this summer, as explained by Imre Speizer at Westpac earlier in the week.

    NZD/USD bearish bias

    Technically, price has moved back below the declining 20 DMA that is at 0.6554 today which was otherwise capping the minor rebound. Momentum has gathered pace and has now penetrated the 200 SMA on the hourly chart and 100 DMA at 0.6539 as well and should the price stay below the 100 DMA for any sustained period, the outlook shifts back into negative and targets 0.6220 over the medium term. Shorter term, 23rd Nov lows at 0.6493 guards the September/October channel.
    For more information, read our latest forex news.

Share This Page