NZD/USD defends 100-DMA and recovers back above 0.6750

By FXStreet The NZD/USD pair defended 100-day SMA support and a bout of short-covering assisted the pair to recover smartly back above the mid-point of 0.6700 handle.

Despite of the recent breakdown the pair has managed to hold and rebound from 100-day SMA and the pattern seems to get replicated on Thursday as well. The pair on Wednesday reversed sharply from 0.6800 handle and extended the slide during early Asian session to retest 100-day SMA support.

Of late, the Kiwi witnessed renewed selling pressure on the back of a descent recovery in the greenback. Moreover, suppressed commodity prices also seemed to keep any attempts of recovery under check.

However, on Thursday the pair managed to recovery quite sharply, despite of crude oil prices witnessing some corrective move and at the time of writing was trading above 0.6750 level.

Technical levels to watch

From current levels, the pair seems more likely to extend its recovery towards 0.6800 round figure mark. However, in order to increase the prospects of further near-term recovery, the pair needs to sustain its strength beyond 0.6815-20 resistance and attempt a move beyond 0.6845-50 strong horizontal resistance.

Conversely, should the pair start giving up its recovery gains and drop back into negative territory, …read more

Source:: FX Street