NZD/USD Slides Further Below 0.6800 Handle

NZD/USD Slides Further Below 0.6800 Handle

18 May 2016, 09:25
Roberto Jacobs

NZD/USD Slides Further Below 0.6800 Handle

The NZD/USD pair's attempted recovery for second straight day on Tuesday got sold into and the pair on Wednesday extended its slide further below 0.6800 handle.

Despite of a slight upgrade in RBNZ's Q2 2-year inflation expectations, the pair erased its early Tuesday morning gains to 0.6843. The pair subsequently attempted a move back to day's peak after bulls seemed unimpressed by an uptick in the US CPI print. The pair, however, resumed its weakening trend and has now dropped to 0.6780 as investors now wait for the release of FOMC meeting minutes, later during the NY session, which would assist traders to determine the next leg of move for the pair.

Technical levels to watch

From current levels, the pair seems to head back towards its recent closing lows support near 0.6760 area, below which it seems to extend its downward momentum further towards 100-day SMA support near 0.6725-20 region.

On the flip side, the pair needs to again build momentum above 0.6800 handle in order to make a fresh attempt to retest 50-day SMA resistance, currently near 0.6840-45 region. Only a clear break through 50-day SMA resistance might negate the near-term bearish bias and could lift the pair back towards 0.6900 round figure mark resistance.


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