NZD/USD overstretched to the downside?

By FXStreet FXStreet (Guatemala) – NZD/USD has entered into a phase of consolidation with resistance stemming from 0.6643, the 20 SMA on the hourly chart and moving between there and the overnight low of 0.6626.

There could be a respite for now on the downside having fallen considerably since the start of this year from above 0.6840 and crash landing to aforementioned lows with little in the way of support on the back of continuing poor economic outcomes in the Chinese economy.

The GDT price index didn’t help the bull’s case either yesterday. Amongst all that, the greenback is staging a strong performance ahead of the Nonfarm Payrolls at the end of the week, with today’s ADP sighted as a prelude to that main event. A fly in the ointment could be within the FOMC minutes that were on the dovish side from Dec with not all members being totally comfortable with the rate hike while it was documented as a close call.

NZD/USD levels

Technically, NZD/USD is en-route for the 100 DMA at 0.6578 while trading below the 50 DMA at 0.6660 in early Asia today. A break to the downside brings in 0.6428 and the Nov low as …read more

Source:: FX Street