NZD/USD struggles on upside recovery

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    NZD/USD was subdued vs the greenback's sell-off overnight and remains so in early Asia with little signs of life as traders return to desks after yesterday's holiday and long weekend.

    China remains out and markets will remain relatively thin. However, there is the potential for further volatility in Tokyo given how far USD/JPY has fallen, testing downside levels on the 115 handle. Stock and commodities, specifically oil, are the key drivers while we await data releases for the bird later on in the week. On top of those, recent Fed watch signifies lessening odds for a hike in 2016.

    NZD/USD levels

    Technically, NZD/USD has done little to convince on the reversal this year and remain better offered below 0.6866 being the start of the 2016 downtrend. Meanwhile, the 4hr 200 sma at 0.6602 guarding 0.6560 and the 200 sma supporting territory on the same time frame. First resistance at R1 is 0.6693 ahead of R2 at 0.6710 and R3 at 0.6727.
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