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

NZD/USD: taking on the 100 DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD has dropped on the back of the decent nonfarm payrolls result that boosted the greenback across the board. US grew 292k jobs in December and the October and November job growth was revised up by 50k.

    "The unemployment rate was unchanged at 5.0%, even though the participation rate ticked up," noted analysts at BBH. "If there was a disappointment it was that hourly earnings did not rise as much as expected. Earnings still grew 2.5% year-over-year vs. 2.3% in November. The market had expected a 2.7% pace. Still, it is the upper end of the cycle."

    At the end of the Asian week, Chinese markets settled down and allowed kiwi traders time to catch their breath ahead of the nonfarm payrolls. NZD/USD has otherwise developed a very strong bear trend at the start of 2016, falling from above 0.6860 and losing over 3 cents in one week's worth of risk-off trade. There will be more to come from China in the trade balance and the US dollar should remain underpinned with this jobs result leaving the downside exposed in the pair.

    NZD/USD levels

    Technically, the 100 DMA at 0.6578 has been eroded and closes below there confirm the trend and exposes 0.6428 as a short-term target and the Nov low as last defense for a full correction towards the Aug low of 0.6220. Only a recovery through the 200 DMA at 0.6825 would alleviate the downside pressures and 0.68 could prove to be a strong psychological resistance.
    For more information, read our latest forex news.

Share This Page