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4 Jun 2014
No respite for NZD/USD; 0.8400 is within reach
FXStreet (Moscow) - NZD/USD touched the Asian high at 0.8444, but the upside movement was not sustained as the pair slipped to its current level of 0.8419.
Those tricky milky ways
Kiwi is depressed. Having rushed to and fro, it finished Tuesday in red and continued sliding on Wednesday morning. The New Zealand currency is very sensitive to global dairy prices hat are in deep decline. An index of whole milk powder prices lost 8.5% and dragged NZD/USD lower despite a spectacular surge of activity in construction sector. There are a lot of factors weighing on kiwi now (dovish RBNZ expectations and strong USD to name just a few), thus NZD/USD might move lower to the nest important support of 0.8400. The upside correction is likely to be limited by 0.8450.
What price levels and patterns have to be considered?
Current price is 0.8418, with resistance ahead at 0.8418 (Yesterday's Low), 0.8431 (Daily Open), 0.8431 (Monthly Low), 0.8431 (Weekly Low) and 0.8437 (Hourly 20 EMA).
Next support to the downside can be found at 0.8413 (Daily Low), 0.8406 (Daily Classic S1), 0.8382 (Daily Classic S2), 0.8381 (Weekly Classic S2) and 0.8357 (Daily 200 SMA).
Looking at price patterns, we can see a Doji 1-hour candlestick formation.
Those tricky milky ways
Kiwi is depressed. Having rushed to and fro, it finished Tuesday in red and continued sliding on Wednesday morning. The New Zealand currency is very sensitive to global dairy prices hat are in deep decline. An index of whole milk powder prices lost 8.5% and dragged NZD/USD lower despite a spectacular surge of activity in construction sector. There are a lot of factors weighing on kiwi now (dovish RBNZ expectations and strong USD to name just a few), thus NZD/USD might move lower to the nest important support of 0.8400. The upside correction is likely to be limited by 0.8450.
What price levels and patterns have to be considered?
Current price is 0.8418, with resistance ahead at 0.8418 (Yesterday's Low), 0.8431 (Daily Open), 0.8431 (Monthly Low), 0.8431 (Weekly Low) and 0.8437 (Hourly 20 EMA).
Next support to the downside can be found at 0.8413 (Daily Low), 0.8406 (Daily Classic S1), 0.8382 (Daily Classic S2), 0.8381 (Weekly Classic S2) and 0.8357 (Daily 200 SMA).
Looking at price patterns, we can see a Doji 1-hour candlestick formation.