6 May 2016
NZD/USD fades a spike to 0.6880
The NZD/USD pair faded its spike to 0.6881, on disappointing NFP figure, and dropped to fresh session low of 0.6818.
In tandem with the ongoing weakness in commodity-linked currencies, the pair has declined over 200-pips from its recent high of 0.7054 touched on Tuesday this week. The pair is now headed for its lowest weekly close in three weeks.
The pair's rejection back from 0.7050-55 region and a subsequent break below 0.6850 has confirmed a bearish double-top chart-pattern formation on daily chart. The confirmation of a bearish pattern now suggest that the the pair could continue sliding further in the near-term.
Technical levels to watch
The pair is currently holding support at 50-day SMA, near 0.6818-20 region. A break below this immediate support should accelerate the fall immediately towards 0.6780 confluence support, comprising of a medium-term ascending trend-channel support and 38.2% Fibonacci retracement level of 0.6347-0.7054 up-move. A break below this important support confluence would exert further downward pressure on the pair.
On the upside, NFP swing high to 0.6880-0.6890 area, coinciding with 23.6% Fibonacci retracement level now turns out to be its immediate strong resistance. Only a decisive move back above this strong resistance could assist the pair to scale some additional recovery, which again could be capped at 0.6920 strong horizontal resistance.
In tandem with the ongoing weakness in commodity-linked currencies, the pair has declined over 200-pips from its recent high of 0.7054 touched on Tuesday this week. The pair is now headed for its lowest weekly close in three weeks.
The pair's rejection back from 0.7050-55 region and a subsequent break below 0.6850 has confirmed a bearish double-top chart-pattern formation on daily chart. The confirmation of a bearish pattern now suggest that the the pair could continue sliding further in the near-term.
Technical levels to watch
The pair is currently holding support at 50-day SMA, near 0.6818-20 region. A break below this immediate support should accelerate the fall immediately towards 0.6780 confluence support, comprising of a medium-term ascending trend-channel support and 38.2% Fibonacci retracement level of 0.6347-0.7054 up-move. A break below this important support confluence would exert further downward pressure on the pair.
On the upside, NFP swing high to 0.6880-0.6890 area, coinciding with 23.6% Fibonacci retracement level now turns out to be its immediate strong resistance. Only a decisive move back above this strong resistance could assist the pair to scale some additional recovery, which again could be capped at 0.6920 strong horizontal resistance.