NZD/USD Drops Further Below 0.6700

NZD/USD Drops Further Below 0.6700

13 May 2016, 18:00
Roberto Jacobs

NZD/USD Drops Further Below 0.6700

A stronger US dollar in the currency market pushed NZD/USD further to the downside during the American session. The pair broke below 0.6800 and dropped to 0.6755, hitting the lowest level in three days.

Price remains near the lows, trading at 0.6760, down 0.85% for the day and headed toward a weekly loss of around 70 pips. Greenback continues with momentum in the market supported by US economic data (upbeat retail sales and consumer confidence numbers).

NZD/USD back to the 55-WMA

The rally of the kiwi that started back in February found resistance at 0.7050 and from there it started to retreat, unable to hold above 0.7000. On Tuesday, it reached 0.6715 (6-week low) before bouncing to the upside.

The 20 and 55-week moving average are close to each other, near the 0.6720 area. A weekly close significantly below could point toward a potential temporal peak at 0.7050, signaling further weakness ahead for the kiwi and reducing the odds of a moving average cross.


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