25 Oct 2013
NZD/USD falls sharply amidst a better mood in Asian markets
FXstreet.com (Athens) – The NZD/USD has been trading lower since the kick off of the Wellington trading opening session ahead of RBNZ meeting next week.
The NZD/USD has been under immensely pressure since the early start of the Asian trading session, having - even momentarily – broke the 0.8300 handle (touched 0.8297, a 2 week low). Traders should bear into consideration, that the kiwi has been on a downtrend shift since Wednesday (around 0.8500), thus has lost roughly 200 pips in 2-day time. Market participants could well attribute this downtrend shift on less hawkish RBNZ, as RBNZ Governor Mr. Wheeler “said that a potential increase in interest rates risks further appreciation on the New Zealand dollar.”
Technical Aspects on the NZD/USD
At the time of writing the pair is trading at 0.8323, down 0.31%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15-minutes timeframe chart. Daily pivot point support can be found at 0.8298, 0.82753, 0.8332, and resistance at 0.8400, 0.8422 and 0.8443, respectively. Last but not least apart from the above, traders should always bear in mind that the kiwi tracks the trend behavior of its Antipodean cousin, the “Aussie” therefore they should pay attention simultaneously at both of them. Traders should bear in mind both the support as of the 16th June low (0.8375) as well as the resistance as of the 0.8525 post 6 May high. All in all, it seems that uptrend momentum hasn’t changed convincingly to the downside.
The NZD/USD has been under immensely pressure since the early start of the Asian trading session, having - even momentarily – broke the 0.8300 handle (touched 0.8297, a 2 week low). Traders should bear into consideration, that the kiwi has been on a downtrend shift since Wednesday (around 0.8500), thus has lost roughly 200 pips in 2-day time. Market participants could well attribute this downtrend shift on less hawkish RBNZ, as RBNZ Governor Mr. Wheeler “said that a potential increase in interest rates risks further appreciation on the New Zealand dollar.”
Technical Aspects on the NZD/USD
At the time of writing the pair is trading at 0.8323, down 0.31%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15-minutes timeframe chart. Daily pivot point support can be found at 0.8298, 0.82753, 0.8332, and resistance at 0.8400, 0.8422 and 0.8443, respectively. Last but not least apart from the above, traders should always bear in mind that the kiwi tracks the trend behavior of its Antipodean cousin, the “Aussie” therefore they should pay attention simultaneously at both of them. Traders should bear in mind both the support as of the 16th June low (0.8375) as well as the resistance as of the 0.8525 post 6 May high. All in all, it seems that uptrend momentum hasn’t changed convincingly to the downside.