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.
