NZD/USD holds above daily lows; dairy prices recover

By FXStreet FXStreet (Córdoba) – NZD/USD continues to move sideways, able to hold above daily lows despite risk aversion, supported by an increase in the GlobalDairyTrade Index that rose 10.9%, after surging 14.8% at the previous auction.

Earlier the pair bottomed at 0.6314, affected by a decline in Asian and European stocks markets. The pair reached the lowest level since August 24. Yesterday it posted the lowest daily close in 6 years.

NZD/USD perspective

Intraday, the pair is moving sideways in a range with support at 0.6320 and resistance at 0.6360, where the hourly 20-SMA also stands. A break of the range could set the tone for the next hours.

On a wider perspective, the long term trend continues to favor the downside. So far no signals of a potential bullish correction have emerged. The area above 0.6300 is offering support for the moment.
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Source:: FX Street