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NZD/USD testing 5-DMA above 0.6700

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 14, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - NZD/USD extends the recovery beyond 0.67 handle, reversing a brief dip to 0.6692 earlier in Asia, on the back of re-emergence of risk-on trades post-European open.

    NZD/USD tests 5-DMA

    Currently, the NZD/USD pair trades -0.16% higher at fresh session highs of 0.6725, firming up above 10-DMA at 0.6709. The Kiwi witnessed fresh buying interest and climbed further to the upside, extending from fresh three-day lows struck at 0.6692 earlier on the day.

    The NZD/USD pair remains supported on expectations that the New Zealand’s economy is expected to grow at the strongest quarterly pace in a year in the third quarter. The NZ GDP figures will be reported on Wednesday following the crucial Fed decision.

    However, the gains remain capped amid ongoing weakness in oil prices, which continue to negatively affect the resource-linked Kiwi. The US oil drops 1% while the Brent oil also follows suit tumbles nearly 1%.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6764 (200-DMA), above which it could extend gains to 0.6783 (Dec 10 High) levels. To the downside immediate support might be located at 0.6700 (10-DMA/ round number) below that 0.6678 (1h 100-SMA).
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