NZD/USD Recovery Finds Resistance at 0.6750

NZD/USD Recovery Finds Resistance at 0.6750

24 May 2016, 18:03
Roberto Jacobs
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NZD/USD Recovery Finds Resistance at 0.6750

NZD/USD managed to move off daily lows during the last hours but the recovery found resistance at 0.6750 and currently it trades at 0.6735/38, down 0.32% for the day. The pair is falling after printing minor gains during the previous three days.

A stronger US dollar across the board weakened NZD/USD. It bottomed during the Asian session at 0.6705, the lowest level since March 28 and then bounced to the upside.

NZD/USD levels to watch

Despite the recent recovery, momentum continues to favor the US dollar. The area above 0.6700 is a key short-term support that capped the decline several times during May; a break lower could open the doors to the next support located at 0.6665/70.

If NZD/USD managed to rise above 0.6750 it could gain momentum to extend the recovery; but only a consolidation on top of 0.6830/40 (20-day moving average / last week highs) would give signals of a stronger recovery.


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