NZD/USD weakest in Asia amid risk-off, hourly 100-SMA eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The NZD/USD pair brought an end to its 4-day winning streak and dropped sharply in the Asian session this Friday, as persistent risk-off environment dampens the sentiment around risk currencies.

    NZD/USD falls further below 0.67 handle

    Currently, the NZD/USD pair drops -0.63% to 0.6673, languishing near fresh session lows reached at 0.6662 last hours. The Kiwi faced rejection once again near 0.6750 levels and fell sharply this session as the sentiment was badly hit by plummeting shares on the Japanese indices, with the global bear market back in vogue. Hence, intensifying risk-off moods almost killed the demand for higher-yielding currencies such as the Kiwi.

    The sell-off seen in the bird may be also partly attributed to a correction after four back-to-back sessions of gains, as investors take profit on their NZD longs ahead of the US retail sales data and also before the weekend. China will re-open on Monday after a week-long New Year holiday and volatility is likely to reach peaks as the Chinese traders will catch-up with this week’s events.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6717/35 (daily R1 & high), above which it could extend gains to 0.6755/63 (Feb 5 & Jan 5 High) levels. To the downside immediate support might be located at 0.6614/ 0.6595 (1h 200-SMA/ 200-DMA) and from there to 0.6586/61 (daily low/ Feb 9 Low).
    For more information, read our latest forex news.

Share This Page

free forex signals