NZD/USD Meets Fresh Supply, Attacks 0.6900

NZD/USD Meets Fresh Supply, Attacks 0.6900

13 April 2016, 08:55
Roberto Jacobs

NZD/USD Meets Fresh Supply, Attacks 0.6900

The NZD/USD pair brought an end to its 3-day rally and fell in the red zone in early Europe as bears took over charge amid the retreat in the oil prices.

NZD/USD off 9-day highs

Currently, the NZD/USD pair trades 0.26% lower at fresh session lows of 0.6904, having faced strong selling pressure ahead of 0.6950 barrier. The Kiwi shaved-off early gains and now turned to the negative territory this session as markets looked past the Chinese trade data, as oil price action continues to drive sentiment.
The black gold stalled its rally and dropped sharply in the last hour as the bearish API report weighs on the investors’ minds. Meanwhile, WTI drops -2%, while Brent is down -1.80%.

Further, a fresh spurt of USD buying across the board also exerted downward pressure on the bird. Looking ahead, focus remains on the US economic releases, while oil and stock markets will be closely monitored.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6850/53 (round number/ 9-day high), above which it could extend gains to 0.6973 (Mar 31 High/ daily R2). To the downside immediate support might be located at 0.6882/76 (1h 50-SMA/ daily S1) and from there to 0.6844/39 (10-DMA/ 1h 200-SMA).

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