FXStreet (Moscow) - NZD/USD has recovered from the Asian low of 0.8468 and stalled at 0.8485 as bulls are not ready for another assault at 0.8500 resistance.

Kiwi learns to fly anew

NZD/USD got the second bullish candle on daily charts in a row, which means that the pair might have bottomed out at 0.8408 (this is the low of August 12). If this is the case, kiwi could possibly extend its upside towards the end of the week, though we need a sustained break above 0.8500/10 resistance area for more bullish-friendly environment. Kiwi is definitely oversold after a steep decline from the top of 0.8837 reached on July 10. The pair lost more than 400 pips in a month, so its high time to take profit on some short positions. On the other hand, positive US economic data is a key risk factor for this view as good industrial production numbers and optimistic consumer sentiment indicator of University of Michgan might push the USD higher across the board and put NZD/USD under renewed pressure.

What price levels and patterns have to be considered?

Spot is presently trading at 0.8486, and next resistance can be seen at 0.8488 (Daily Classic PP), 0.8493 (Daily Open), 0.8493 (Weekly High), 0.8495 (Daily High) and 0.8515 (Yesterday's High).

Support below can be found at 0.8484 (Hourly 20 EMA), 0.8473 (Weekly Classic PP), 0.8467 (Daily Low), 0.8465 (Hourly 200 SMA) and 0.8462 (Daily 200 SMA).

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center