Forex: NZD/USD trading positively at 0.8168/70 after overnight collapse

FXstreet.com (Barcelona) - The NZDUSD has rallied slightly during European trading this morning after last night's plunge, which was instigated by the sour retail sales data in New Zealand. Following a 35-pip collapse overnight, the pair has regained its footing and now trades in the area of 0.8168/70.

"The NZDUSD is still trading sideways above the 0.8100 level and below the linear regression indicators. The risk is high at the time being as RSI is trading sideways around 45 points signaling the sideways move remains dominant and we will not bet on a direction for now before breaching 0.8100 or returning above 0.8255-60 once again." notes the ICN.com analyst team.

Later today investors will be hawkishly eying several US data releases, including the FOMC minutes at 19:00 GMT. In New Zealand, the Business PMI at 21:30 GMT stands as the only noteworthy newswire today.

The NZDUSD has settled with an advance of +0.10% off its opening. ICN.com analysts point to resistive measures at 0.8185, followed by 0.8220, onto 0.8255. On the decline or in the event of a prolonged plunge into negative territory, a short-term breach of the 0.8135 level will trigger supports at 0.8100 (key level) and 0.8080.