NZD/USD sold-off to test key support at 0.7200

Currently, NZD/USD is trading at 0.7203, up 0.24% on the day, having posted a daily high at 0.7234 and low at 0.7181.

NZD/USD got sold off to test the 0.72 handle that meets a strong level of support once resistance at a psychological level. The calendar is void of events ahead of tomorrow's FOMC where markets have priced in a 25bps rate hike, but should they not hike and accompany the decision with concerns about global uncertainty, a Trump presidency, a European banking crisis and many other complicated scenarios that has prevented the Fed from hiking rates, we could well see the dollar strengthen on risk aversion and do the complete opposite of what one might expect, and of the same theme, if the Fed do hike, you could see a sell -off when the market sells the fact. Either way, there is the potential for volatility and markets are biding their time and positions until then.

NZD/USD levels

Spot is presently trading at 0.7203, and next resistance can be seen at 0.7209 (Yesterday's High), 0.7219 (Weekly Classic R1), 0.7225 (Daily Classic R1), 0.7234 (Daily High) and 0.7264 (Daily Classic R2). Next support to the downside can be found at 0.7202 (Daily 100 SMA), 0.7199 (Hourly 20 EMA), 0.7186 (Daily Open), 0.7186 (Monthly High) and 0.7186 (Weekly High).