NZD/USD about ready to re-test critical support at 0.8139

FXstreet.com (Barcelona) - The NZD/USD tested key support at 0.8139 at the end of last week and looks ready to re-test that level this week. A breakdown there opens up the flood gates to the downside in the short-term.

NZD/USD traders very light data flow off of which to work this week

With no data due out from New Zealand this week, the only data scheduled that may have NZD/USD traders’ attention include:

• Monday – US Pending Home Sales; US Dallas Fed Manufacturing Index
• Tuesday – US Chicago Purchasing Managers Index; US Consumer Confidence
• Wednesday – New Years Day holiday
• Thursday – US PMI; US Weekly Jobless Claims; US Construction Spending; US Prices Paid
• Friday – US ISM New York Index

Technical outlook for NZD/USD

Technicians say the NZD/USD is likely headed for a test of support at 0.8139. If that level breaks, the next support level comes into play at the 11/29 low of 0.8083. Resistance comes into play for NZD/USD at last Friday’s high of 0.8223 and is backed up by the 12/16 high of 0.8287.