Forex: NZD/USD recovery loses steam, settles at 0.8235

FXstreet.com (Barcelona) - After a brief recovery up towards the vicinity of 0.8241, the NZDUSD has once again reverted downwards, falling once more below its opening prices and into negative territory at the onset of American trading. The most recent pullback represents the latest consolidation movement today, which started off of session highs at 0.8270. In these moments the cross is negotiating a loss of -0.07% Monday, having settled at 0.8235.

According to the technical analyst team at ICN.com, "Despite the downside move, the pair remains stable above the linear regression indicators and above the main support for the ascending channel. Therefore, we hold onto our positive expectations and note that the stochastic is biased negatively, which might increase the volatility and possible downside corrections - in general, trading above 0.8185 is considered positive."

Technically speaking the NZDUSD faces calculated support at 0.8220, 0.8200 (key psychological level) and 0.8185. On the ascension, a break above the 0.8255 handle will trigger correctional measures at the resistances of 0.8310 up towards 0.8355.

"We retain but temper our positive bias for the week ahead, targeting the 0.8355 region, however given the much better news out of China, price action in commodity markets is pretty poor." writes the Westpac Strategy Team.