NZD/USD Resumes its Down-Trend, Drops Back Below 0.6800 Handle
NZD/USD Resumes its Down-Trend, Drops Back Below 0.6800 Handle
After fading its spike to 0.6850 on Thursday, the NZD/USD pair dropped back below 0.6800 handle on slight lower-than-expected quarterly retail sales data from New-Zealand.
The pair on Thursday was trading with small gains on the back of
improvement in Business NZ Manufacturing Index and sharp rise in US
unemployment claims. Thursday's rise was over and above the pair's
strength on Wednesday after RBNZ released its Financial Stability
Report.
Technically the pair rebounded from lower levels to retest a medium-term
ascending trend-channel support break-point turned immediate resistance
near 0.6850 and resumed its previous trend. Hence, a follow through
selling pressure below 0.6780-60 horizontal zone seems to continue
dragging the pair lower in the near-term.
Technical levels to watch
On a sustained weakness below 0.6780 support the pair seems to extend
its weakening trend, initially towards 0.6700 round figure mark support
and eventually towards the very important 200-day SMA support near
0.6645-40 region.
On the upside, weekly high near 0.6850 level now seems to have emerged
as immediate strong resistance, which if cleared could assist the pair
towards 0.6900 round figure mark. This 0.6900 mark might now cap any
near-term upside for the pair.
