NZD/USD falls by 100 pips on the day to 0.7060

NZD/USD D1 23-03
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As much as the NZ government announcing curbs to ease housing prices may what kicked things off, it isn’t quite nearly a major risk trigger for the kiwi in my view. However, the chart is more telling of what is going on with the currency right now.

As mentioned earlier, NZD/USD is breaking through a host of key support levels today and there is little in the way stopping a drop towards 0.7000 next.

In particular, the break of the 100-day moving average (red line) – arguably for the first time, at least in a meaningful way, since May last year – is a key moment for sellers.

Adding to that is the failed defense by buyers at the 18 January low @ 0.7096.

This puts a lot of pressure now for buyers to try and defend the 7 and 21 December lows @ 0.7003-06 as well as the 0.7000 handle, with the 50.0 retracement level @ 0.6989 also seen nearby – that is should the downside momentum extend.

Failing which, the 200-day moving average (blue line) now seen @ 0.6865 will be the next key level to watch on the charts.

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