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The New Zealand dollar traded lower against the US dollar towards the 0.7680 support area, but later managed to climb higher. The New Zealand Gross Domestic Product was released by the Statistics New Zealand during the London session. The outcome was touch better than expected, as the New Zealand GDP grew by 1% in the third quarter of 2014, compared with the last quarter. There was a disappointing side as well as the New Zealand GDP in terms of the yearly change missed the mark and registered an increase of 3.2%, compared with the expectation of 3.3%. The New Zealand dollar was seen trading a touch lower after the release.
There is a support trend line formed on the hourly chart of the NZDUSD, which managed to hold the downside in the pair during the Asian session. It is currently correcting higher and struggling to break the 200 hour moving average. There is a lot of resistance on the way up as the 100 hour moving average is also above the 200 hour MA. Moreover, the 38.2% fib retracement level of the last leg from the 0.7848 high to 0.7680 low is also sitting around the 0.7750 level. So, any upside move might find a lot of hurdlers around the mentioned level. The hourly RSI is well below the 50 mark, which could weigh a lot on the NZDUSD pair moving ahead.
On the downside, a break below the recent low of 0.7680 might ignite more losses in the NZDUSD pair.
Overall, one might consider selling rallies as long as the pair is trading below the 200 MA.
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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com
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