FxWirePro: NZD/USD Takes 100-DMA Support, Edges Higher from Fresh 2-Month Lows
- NZD/USD is recovering from new 2-month lows hit on Thursday after taking support by 100-DMA (currently at 0.6717).
- Minor-recovery seen in the oil prices and the Asian equities, helping lift demand for higher-yielding currencies.
- Our previous call (http://www.econotimes.com/FxWirePro-Kiwi-on-the-back-foot-NZD-USD-slips-below-078-handle-good-to-sell-rallies-209544) has hit all targets. Further weakness only on breaks below 100-DMA at 0.67.
- Focus now shifts towards the US existing home sales and Fed speak due later in the NY session.
- To the upside, the next resistance is located at 0.6769(5-DMA), above which it could extend gains to 0.6800.
- To the downside immediate support might be located at 0. 6736 (cloud base) and then at 0.6717 (100-DMA).
- Stochs are at oversold levels which suggest some pullback, however longer term bias is lower. We advise waiting for further confirmation to take any trading call.