NZD/USD Extends Recovery Towards 0.6900

NZD/USD Extends Recovery Towards 0.6900

26 April 2016, 05:36
Roberto Jacobs
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NZD/USD Extends Recovery Towards 0.6900

The recovery from NY lows gained further traction in the Asian hours, driving the NZD/USD pair further towards 0.69 handle.

NZD/USD takes-out 20-DMA

Currently, the NZD/USD pair trades 0.47% higher at fresh session highs of 0.6787, breaking through 20-DMA upside barrier placed at 0.6883. The Kiwi’s bullish run found fresh legs over the last hours, as the US dollar extended its downside momentum versus its major peers. The USD index now drops -0.12% to hit fresh session lows of 94.64.

Moreover, a rebound in the oil prices after yesterday’s sharp decline collaborated to the upbeat tone around the resource-linked Kiwi. Markets now await the crucial policy decision from the Fed as well as the RBNZ later this week for next direction on the bird.

In the meantime, economic releases from the US and New Zealand will be closely eyed for further momentum on the major. The durable goods data from the US will be published later today, followed by NZ trade balance data due tomorrow.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6920/24/ (1h 100 & 200-SMA), above which it could extend gains to 0.6950 (psychological levels). To the downside immediate support might be located at 0.6863 (1h 20-SMA/ daily pivot) and from there to 0.6800/0.6782 (round number/ 50-DMA).


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