Forex: NZD/USD breaks support at 0.8135 after US data

By FXstreet.com | November 14, 2012 AAA

FXstreet.com (Barcelona) - The NZDUSD has taken a topple during the afternoon of European trading, plunging more than 60 pips off its intraday maximum (0.8183) and establishing new session lows in the region of 0.8122/25. This drop has only been exacerbated by the recently released poor tranche of US data, which has coincided with a daily decline of -0.46% from its opening.

Following the analysis of the ICN.com analyst Team, "The NZDUSD is trending lower after it failed to stabilize above the linear regression indicators. Despite this decline, the pair is still stable above the 0.8100 level and without a breach of the aforementioned mark we cannot confirm the extension of the downside move as the risk-to-reward ratio is inappropriate and therefore we will stay aside for the rest of the day."

In the United States, the Producer Price Index ex Food & Energy (YoY) has grown only +2.1% in October, missing consensus expectations of +2.5%. Meanwhile, the Producer Price Index ex Food & Energy (MoM) has contracted -0.2% in October, compared with projections of +0.1%. In addition, Retail Sales (MoM) have also declined by -0.3% in October, which exceeds the consensus loss of only -0.2%. Finally, Retail Sales ex Autos (MoM) have reported a static figure in October, as opposed to a projected growth of +0.2%.

The NZDUSD has broken through calculated support at 0.8315, as determined by the ICN.com analyst team. Furthermore, the analysts have determined the pair will encounter additional means of support at 0.8100, followed by 0.8080 onto 0.8040. On the ascension, a prolonged retracement above the 0.8185 mark will initiate resistive measures at 0.8220 and 0.8255.

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