NZD/USD reverses a spike to hourly 200-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - NZD/USD’s solid recovery from four-month lows met supply near hourly 200-SMA and the prices turned lower thereon, now finding good support above hourly 100-SMA at 0.6436.

    NZD/USD oscillates between key MA’s on hourly sticks

    Currently, the NZD/USD pair rises 0.33% to 0.6451, having posted day’s high at 0.6476 and day’s low at 0.6420. The Kiwi manages to remain on the bids, although retreated from session tops and dropped near 0.6440 region after the negative start to the Chinese markets.

    Over the last hours, the bird has picked-up pace and now struggles to extend beyond 0.6450 levels on its way up to the hourly 200-SMA located at 0.6483. The demand for higher-yielding currencies was back in vogue after the oil prices recovered from multi-year lows along with the industrial metals and Asian equities.

    Moreover, markets also cheer upbeat NZ manufacturing data as well as the steady stance by BOC announced on Wednesday. Meanwhile, the Kiwi will continue to track the broader market sentiment along with the oil price movement for further momentum.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6476/83 (daily high/ 1h 200-SMA), above which it could extend gains to 0.6514 (Jan 19 High/ daily R1) levels. To the downside immediate support might be located at 0.6400 (round number) and from there to 0.6379 (Jan 15 Low).
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