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NZD/USD tracks oil lower, breaches 1hr 100-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - NZD/USD is seen correcting sharply lower in mid-Asia, tracking the renewed weakness in the oil prices and trades below hourly 100-SMA at 0.6482.

    NZD/USD awaits Fed, RBNZ

    Currently, the NZD/USD pair trades -0.22% lower at 0.6486, moving slightly away from fresh session lows struck at 0.6478 last hours. The Kiwi met fresh supply just ahead of 20-DMA at 0.6513 and drifted lower over the last hours, with the acceleration of the losses in oil and China stocks adding to the bearish pressure on the bird.

    Moreover, the NZD/USD pair remained largely unperturbed by the bullish tone seen in its OZ neighbour following better than expected Aus CPI figures, as oil price action continues to lead the market sentiment.

    Meanwhile, markets also remain cautious ahead of the Fed and RBNZ policy decision due later today, although no rate adjustments are expected to be announced by both central banks.

    NZD/USD Levels to consider


    To the upside, the next resistance is located at 0.6513/18 (20-DMA/ Daily High), above which it could extend gains to 0.6534/41 (Jan 25 High/ Daily R1) levels. To the downside immediate support might be located at 0.6451/23 (Daily S1/ Jan 26 Low) and from there to 0.6409 (Jan 21 Low).
    For more information, read our latest forex news.
     

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