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4 Jun 2014
NZD/USD hits 0.8420 daily support
FXStreet (Bali) - The Kiwi was the under-performer on Tuesday, with yet another negative dairy auction not helping price action.
NZD/USD saw its exhange rate decline to a new low not seen since March 7 at 0.8417, a level that converges with a sequence of daily highs seen during late 2013, which has been providing decent support thus far.
However, the non-volatile down-moves in place since the failure above 0.87 suggests a worrying absence of buying interest, leading Jim Langlands, Founder at FXCharts, to suspects that "a run to the 0.8400 target now looks very possible."
Technically, Jim notes that "a break of 0.8400 would head towards the major Fibo support at around 0.8375(38.2% of 0.7718/0.8778) and 0.8350 (200 DMA)", while on the topside, "now has resistance at around 0.8440/0.8450. Above here, 0.8475 and 0.8500 will see sellers albeit unlikely to be bothered today", Jim adds.
NZD/USD saw its exhange rate decline to a new low not seen since March 7 at 0.8417, a level that converges with a sequence of daily highs seen during late 2013, which has been providing decent support thus far.
However, the non-volatile down-moves in place since the failure above 0.87 suggests a worrying absence of buying interest, leading Jim Langlands, Founder at FXCharts, to suspects that "a run to the 0.8400 target now looks very possible."
Technically, Jim notes that "a break of 0.8400 would head towards the major Fibo support at around 0.8375(38.2% of 0.7718/0.8778) and 0.8350 (200 DMA)", while on the topside, "now has resistance at around 0.8440/0.8450. Above here, 0.8475 and 0.8500 will see sellers albeit unlikely to be bothered today", Jim adds.