24 Sep 2013
NZD/USD descends sharply plunging to 0.8315 lows; breaks 3-week trendline
FXstreet.com (Chicago) - NZD/USD continues erasing 6.72% monthly gains after retracing 0.61% so far, bottoming major losers across the board.
Bearish sentiment
Prior to trade balance releases in New Zealand, heavy selling is felt in the market. With no major Asian Pacific data releases during the session, the pair is subdued to weak Chinese data. In the US, the bearish sentiment spread to Wall Street after Fed’s comments on undefined tapering.
NZD/USD Technical Levels
Price action reveals bottoms around the 0.8313 zone with a possible bounce in formation. The pair broke below the upward trendline that originated last August 30th on plunge but found grounds preventing further losses. Offered at 0.8321, the pair navigates between supports aligned at 0.8352 (September 19th lows), 0.83 (May 14th highs) followed by 0.8267 (May 17th highs) and resistances set at 0.8383 (September 23rd highs) followed by 0.8430 (April 30th lows) and 0.8473 (May 1st highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe below the EMA20.
Bearish sentiment
Prior to trade balance releases in New Zealand, heavy selling is felt in the market. With no major Asian Pacific data releases during the session, the pair is subdued to weak Chinese data. In the US, the bearish sentiment spread to Wall Street after Fed’s comments on undefined tapering.
NZD/USD Technical Levels
Price action reveals bottoms around the 0.8313 zone with a possible bounce in formation. The pair broke below the upward trendline that originated last August 30th on plunge but found grounds preventing further losses. Offered at 0.8321, the pair navigates between supports aligned at 0.8352 (September 19th lows), 0.83 (May 14th highs) followed by 0.8267 (May 17th highs) and resistances set at 0.8383 (September 23rd highs) followed by 0.8430 (April 30th lows) and 0.8473 (May 1st highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe below the EMA20.