NZD/USD testing the key 200 dma resistance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    NZD/USD has recovered again from the 200 sma on the 4hr chart within volatility that is common to markets in 2016.

    The 0.67 handle has proven to be lofty for the bird while it struggles to fully recover in February after a heavy sell off at the start of a turbulent year so far.

    While the greenback is starting to struggle in the skepticism, further out the bird is expected to be lower by analysts at Westpac mid year. "We expect NZD/USD to be lower by mid-2016, targeting 0.62. Our main argument is that the Fed should raise US interest rates further this year, but markets have priced little in," adding, "We expect US data to soon start surprising positively, pushing US interest rates higher. In contrast, the RBNZ should ease twice this year, but markets have priced in only once."

    NZD/USD levels

    Technically, NZD/USD is taking on the 200 dma at 0.6694 above the pivot of 0.6661. RSI on the daily sticks is neutral at 57. R1 is located at 0.6717, R2 0.6750 and R3 at 0.6806. The 200 dma has been a level that has capped the recoveries since the December 2015 rally and a break with closes would be significant.
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