NZD/USD up to test the vicinity of 200 DMA at 0.6853

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USDstrong>> remains on its perch trading at the highest levels within the ascending channel from middle of November lows of 0.6431.

    Despite the Fed hike, the bird managed a bid from 0.6680 supporting territory post the FOMC meeting while the greenback softened into the pre-Xmas closing sessions.

    Commodities are the driver at the moment rather than the Central Banks divergence theme for the time being with oil bouncing back in a short squeeze of over 4% last week, and coupled with a positive new Zealand trade balance the upside remains favoured as we head towards the close of 2015 this week.

    NZD/USD levels

    Technically, a break of the 200 DMA at 0.6853 would be compelling for a continuation of the positive theme backing the bird. However, the broader bearish trend is yet to be fully contested from above 0.76 and the psychological 0.70 handle remains an obstacle to close the gap at 0.7107. A reversal looks in at the 20 DMA at 0.6726 below S3 at 0.6791.
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