NZD/USD: Sell-Off Extends, Breaches 100-DMA Support

NZD/USD: Sell-Off Extends, Breaches 100-DMA Support

24 May 2016, 04:54
Roberto Jacobs
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NZD/USD: Sell-Off Extends, Breaches 100-DMA Support

The NZD/USD pair finally broke the overnight consolidative phase to downside and extended its bearish run into the Asian trades, now heading for a test of 0.67 barrier.

NZD/USD erodes nearly 40-pips in Asia so far

Currently, the NZD/USD pair trades 0.47% lower at 0.6729, having posted daily lows at 0.6727 last minutes. The Kiwi keeps falling and breached the crucial 100-DMA support located at 0.6734, as the bears remain relentless amid a classic risk-off sentiment persisting in the markets, with both the Asian equities and oil prices trading in the red.

Moreover, the ongoing upbeat momentum surrounding the greenback against its major rivals also continues to weigh on the NZD/USD pair. While poor Westpac MNI Chinese consumer sentiment data further adds to the downward pressure on the bird.

Nothing of note for the major in the day ahead, except for the US new home sales data and hence, attention shifts towards the NZ trade balance data due tomorrow, which may provide fresh direction on NZD/USD.

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NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6751/63 (5 & 10-DMA), above which it could extend gains to 0.6800 (round number). To the downside immediate support might be located at 0.6700/0.6660 (round number/ 200-DMA) and from there to at 0.6618 (Mar 10 Low).


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