NZD/USD recovering towards 1hr20 SMA

By FXStreet FXStreet (Guatemala) – NZD/USD has been flat in a tight range after the slide from above the 0.6820 level to 80 pips on the low before a recovery back to current spot where the price consolidates below 20 SMA on the hourly chart at 0.6780 currently.

The bird was muted after GlobalDairyTrade (GDT) Price Index rose 1.9% at Fonterra’s latest auction. Milk Powder Prices rose 1.8% to $2304/mt, but the rise was less than expected and the US CPI’s released before hand were steaming the show anyway while the greenback traders made some last minute preparations ahead of tonight’s FOMC meeting. The CPI’s were yet another solid foundation to expect a Fed hike as the outcome of tomorrow’s FOMC meeting while we await to find out what “gradual” means from Yellen.

NZD/USD levels

Technically, NZD/USD needs to overcome the 20 SMA on the hourly and target the 0.68 handle if there is a chance of a recovery and on towards R1 at 0.6826, R2 at 0.6844 and R3 at 0.6861. To the downside, the 100 SMA on the same time frame is located at 0.6747 and guards S2 and the 200 SMA at 0.6704/09.
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Source:: FX Street