24 Oct 2013
NZD/USD rejected off 0.8440 resistance, NZ Treasury report weighs
FXstreet.com (Barcelona) - NZD/USD is pullincg back from its intraday high at 0.8440, which coincides with old support broken yesterday, after some traders started to take notice of a Treasury report by New Zealand.
In the report, it suggest the potential introduction of capital gains tax and restrictions on foreign investment to cool down the housing bubble. While the document still implies a low probability on these new measures being implemented short term, traders have nonetheless reacted gradually negative towards the Kiwi in the last hour.
According to Jim Langlands from FXCharts: "The topside will see offers at the previous 0.8440 support. I don’t think that the Kiwi is going above there today – in fact we will be lucky to see it – but if wrong, further offers will arrive at 0.8460 and then 0.8485."
On the downside, Jim notes: "The Kiwi has pulled up at the first Fibo support at around 0.8350 – as per the chart – which is also where the daily Tenkan lies, a break of which would see a move down to 0.8300. Below there, the Kiwi will be back within the broad sideways congestion, the base of which is at around 0.8230 and is also the next Fibo support (38.2% of 0.7718/0.8543)."
In the report, it suggest the potential introduction of capital gains tax and restrictions on foreign investment to cool down the housing bubble. While the document still implies a low probability on these new measures being implemented short term, traders have nonetheless reacted gradually negative towards the Kiwi in the last hour.
According to Jim Langlands from FXCharts: "The topside will see offers at the previous 0.8440 support. I don’t think that the Kiwi is going above there today – in fact we will be lucky to see it – but if wrong, further offers will arrive at 0.8460 and then 0.8485."
On the downside, Jim notes: "The Kiwi has pulled up at the first Fibo support at around 0.8350 – as per the chart – which is also where the daily Tenkan lies, a break of which would see a move down to 0.8300. Below there, the Kiwi will be back within the broad sideways congestion, the base of which is at around 0.8230 and is also the next Fibo support (38.2% of 0.7718/0.8543)."