NZD/USD Under Heavy Selling Pressure, Below 0.6800

NZD/USD Under Heavy Selling Pressure, Below 0.6800

5 April 2016, 08:22
Roberto Jacobs

NZD/USD Under Heavy Selling Pressure, Below 0.6800

The offered tone around the NZD keeps growing bigger in the early European trades, dragging NZD/USD below 0.68 handle.

NZD/USD on its way to 20-DMA at 0.6775

Currently, the NZD/USD pair trades -0.69% lower at fresh session lows at 0.6786, failing to hold above 0.68 handle. The Kiwi faces heavy selling pressure this session largely on the back of poor sentiment towards riskier/ higher yielding currencies as falling Asian equities and oil prices crush investors’ risk-appetite. The Japanese Nikkei sinks -2.50%, Australia’s ASX index slides -1.60%, while both crude benchmarks lose -0.50% each.

Looking ahead, the bird will continue to get influenced by the broader market sentiment, while the upcoming US data and the Fonterra’s dairy auction results will provide fresh impetus to the NZD/USD pair.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6800/15 (round number/ 10-DMA), above which it could extend gains to 0.6850/59 (psychological levels/ 5-DMA). To the downside immediate support might be located at 0.6718/04 (50-DMA/ daily S3) and from there to 0.6680 (100-DMA).

(Market News Provided by FXstreet)

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