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6 Aug 2014
g>Beware, falling kiwis ahead
FXStreet (Moscow) - NZD/USD dipped to 0.8422 on the back of mixed labour market statistics published early in Asia, but fresh buying interest located around that level capped the downside for the time being.
Kiwi bears are celebrating
Kiwi held well above 0.8500 level, but only until USD began to grow across the board . Once 0.8500 support was taken out, there was hardly anything to stop NZD/USD from nose-diving towards previous week’s low at 0.8461 and then to 0.8422. This is a large downside target 0.8422 (June 5 low), that may discourage kiwi bears for some time. Kiwi is deemed overvalued from the long term perspective, and has room for downside correction. On the intraday basis keep an eye at 0.8460 on the upside and 0.8422 - 0.8400 on the downside.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8435, and next resistance can be seen at 0.8452 (Yesterday's Low), 0.8457 (Daily 200 SMA), 0.8461 (Weekly Classic S1), 0.8464 (Hourly 20 EMA) and 0.8466 (Daily Open).
Below, we can see support at 0.8423 (Daily Low), 0.8411 (Weekly Classic S2), 0.8403 (Daily Classic S2), 0.8360 (Weekly Classic S3) and 0.8354 (Daily Classic S3).
Looking at price patterns, we can see a Doji 1-hour candlestick formation.
Kiwi bears are celebrating
Kiwi held well above 0.8500 level, but only until USD began to grow across the board . Once 0.8500 support was taken out, there was hardly anything to stop NZD/USD from nose-diving towards previous week’s low at 0.8461 and then to 0.8422. This is a large downside target 0.8422 (June 5 low), that may discourage kiwi bears for some time. Kiwi is deemed overvalued from the long term perspective, and has room for downside correction. On the intraday basis keep an eye at 0.8460 on the upside and 0.8422 - 0.8400 on the downside.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8435, and next resistance can be seen at 0.8452 (Yesterday's Low), 0.8457 (Daily 200 SMA), 0.8461 (Weekly Classic S1), 0.8464 (Hourly 20 EMA) and 0.8466 (Daily Open).
Below, we can see support at 0.8423 (Daily Low), 0.8411 (Weekly Classic S2), 0.8403 (Daily Classic S2), 0.8360 (Weekly Classic S3) and 0.8354 (Daily Classic S3).
Looking at price patterns, we can see a Doji 1-hour candlestick formation.