Technical Analysis

NZD/USD slips to session low as buyers surrender near-term control

NZD/USD hits a low of 0.6880 on the day

ForexLive

The kiwi is a notable mover on the session as price slips to a low of 0.6880, falling below the 100-hour MA (red line) @ 0.6892. As such, buyers have lost near-term control in the pair to be more neutral with support seen at the 200-hour MA (blue line) @ 0.6875.

There isn’t much headlines driving the move here with a mixed mood among risk assets. European equities are looking more flat with oil holding lower but gold is also trading weaker on the day so far.

But looking at the daily chart:

NZD/USD D1 04-07

We can see that buyers have struggled to hold a firm break above the key daily moving averages in the past week and with the latest rejection here, it could be suggestive that the recent upside momentum is encountering a bit of a pause.

As such, I would pay attention to the 200-hour MA @ 0.6875 today. If that breaks, it would put sellers back in near-term control and potentially be the catalyst for a move back lower in the pair. From a fundamental perspective though, the next key risk event is tomorrow’s US jobs report so we could have to wait until then for more clarity on which direction the pair will end up to close out the week.

Articles You May Like

How to Choose a Broker in US and Canada? Day Trading for Beginners 2019
Indian Officials: India-US trade talks end without major progress – Reuters
European shares little changed to end the week
Will we see US 2-year yields at 1% by the end of next year?
New lows in USDJPY

Leave a Reply

Your email address will not be published. Required fields are marked *