Forex: NZD/USD crumbles to 0.8238/41 amidst risk aversion

FXstreet.com (Barcelona) - The world may not have ended as we know it, however for proponents of the NZDUSD, it may have seemed this way following a monumental collapse of the pair Friday across during the European session. After trading as high as 0.8347, the pair fell over 100 pips to trade at 0.8238/41, where it resides presently amidst a risk-off movement.

"The hourly NZDUSD chart has a mid level bearish pattern, Bearish Engulfing. Though already in a bear market price action is already overextended. New positions should thus be avoided while open sells should have their stops tightened to just above the patterns high." warns Mark De La Paz, an analyst at FX Instructor.

The NZDUSD has collapsed a stunning -1.16% Friday after crumbling through supports at 0.8310, 0.8290, and 0.8262. On the ascension, the pair will encounter distant resistances at 0.8358, onto 0.8356 and finally 0.8406, calculates the Mataf.net analyst team.

In the United States, Personal Spending grew by +0.4% in November, matching expectations. In addition, the Core Personal Consumption Expenditure - Prices Index (YoY) climbed +1.5% in November, slightly missing projections of +1.6%. Finally, Personal Income (MoM) jumped +0.6% in November, exceeding expectations of only +0.3%.