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3 Jun 2014
NZD/USD is on mend above 0.8450
FXStreet (Moscow) - NZD/USD returned to the area above 0.8450 after opening at 0.8440 in Asia.
New lows loom large
NZD/USD had another deeply bearish day. The pair broke below the key support level of 0.8450 and set new monthly low at 0.8439. The downside was technically induced as New Zealand macroeconomic calends is next to empty this week. On the longer-term perspective the Kiwi is likely to continue its disgraceful trip to the South at least until RBNZ monetary policy meeting on June 12. Risk sentiments might also affect NZD/USD dynamics, though it is less receptive to positive risk environment nowadays. From the technical point of view, Monday’s low of 0.8439 is the key for the bears. Once it is broken, the downside will be extended to 0.8400 where the new buyers will emerge. Kiwi bulls need to settle above 0.8450 to get a chance for more substantial rebound.
What price levels and patterns have to be considered?
With spot trading at 0.8457, we can see next resistance ahead at 0.8458 (Hourly 20 EMA), 0.8461 (Daily High), 0.8464 (Daily Classic PP), 0.8480 (Daily 100 SMA) and 0.8487 (Daily Classic R1).
Next support to the downside can be found at 0.8452 (Daily Open), 0.8452 (Monthly Low), 0.8452 (Weekly Low), 0.8440 (Weekly Classic S1) and 0.8440 (Yesterday's Low).
New lows loom large
NZD/USD had another deeply bearish day. The pair broke below the key support level of 0.8450 and set new monthly low at 0.8439. The downside was technically induced as New Zealand macroeconomic calends is next to empty this week. On the longer-term perspective the Kiwi is likely to continue its disgraceful trip to the South at least until RBNZ monetary policy meeting on June 12. Risk sentiments might also affect NZD/USD dynamics, though it is less receptive to positive risk environment nowadays. From the technical point of view, Monday’s low of 0.8439 is the key for the bears. Once it is broken, the downside will be extended to 0.8400 where the new buyers will emerge. Kiwi bulls need to settle above 0.8450 to get a chance for more substantial rebound.
What price levels and patterns have to be considered?
With spot trading at 0.8457, we can see next resistance ahead at 0.8458 (Hourly 20 EMA), 0.8461 (Daily High), 0.8464 (Daily Classic PP), 0.8480 (Daily 100 SMA) and 0.8487 (Daily Classic R1).
Next support to the downside can be found at 0.8452 (Daily Open), 0.8452 (Monthly Low), 0.8452 (Weekly Low), 0.8440 (Weekly Classic S1) and 0.8440 (Yesterday's Low).