NZD USD backs from several week high
1/10/2017 10:03:33 AM
NZD/USD had reached to a 4 week high level of 0.7046 on FX transactions, and ran through fresh offers and has now floated into negative territory.
Currently floating around 0.7015 psychological mark, testing session low, rising dollar request, with the key USD Index retreating majority of its early losses, appears to be key factor applying some selling pressure around the major.
From technical viewpoint, the pair is retreating from 50% Fibonacci level of 0.7238-0.6862 downslide. Furthermore, with 50-day SMA crossing below 200-day SMA, occurrence of Death Cross looks visible on daily chart, suggesting continuation of the pair's near-term depreciating move.
A follow through selling pressure below 0.7015 mark is likely to speed up the slide towards 23.6% Fibonacci retracement level support near 0.6947 area below which the pair is likely fell back towards 0.6915 horizontal support.
In the meantime, momentum above 0.7055 immediate persistence could get expanded but might now be capped at an important confluence persistence near 0.7076 area, including of 50-day and 200-day SMAs.
FOREX Fundamental Analysis
Written by FxErvin