Visit our website – Ikofx
The New Zealand dollar was seen struggling against the US dollar recently, as it traded lower towards the 0.7820 support. The NZDUSD pair broke an important support area, which has opened the doors for more losses in the near term. The New Zealand Producer Price Index Output and Input data was released by the Statistics New Zealand earlier during the Asian session. The outcome was on the disappointing side, as the New Zealand Producer Price Index Output decreased by 1.1% and Input by 1.5%. The market was expecting an increase this time around. That is the reason why the NZDUSD pair came under pressure.
There was an important bullish trend line formed on the hourly chart of the NZDUSD pair, which was breached earlier during this week. This particular break has ignited sharp downside reversal in the pair. We need to see how the pair trades during the upcoming sessions. One important bearish sign to note from the charts is the fact that the pair is now trading below the 100 and 200 hourly moving averages. The pair is currently consolidating in a range and might correct higher from the current levels. In that situation, the pair might find resistance around the 23.6% fib retracement level of the last drop from the 0.7973 high to 0.7824 low. The mentioned level is also coinciding with the 200 hourly MA.
On the downside, initial support is around the recent low of 0.7820, followed by the 0.7800 handle. Any further decline might take the pair towards the 0.7750 level.
Overall, one might consider selling rallies as long as the 200 MA holds.
————————————-
Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com
Free Reports:
