NZD/USD trivial bids challenge strong bearish trend

By FXStreet FXStreet (Guatemala) – NZD/USD is currently trading at 0.6675 with a high of 0.6783 and a low of 0.6651.

NZD/USD reversed the bid when it had been following suit of the Aussie in early Asia on the back of the run up to the RBA meeting. However, pressures came in that started to push the bird down below the 200 SMA on the hourly time frames at 0.6750 and the subsequent penetration of the 20 SMA (0.6726) on the same time frame saw the NZD slide even further leading into the Fonterra gauge of dairy prices.

The Fonterra prices fell 7.4% from the previous auction. The NZD/USD price subsequently dropped an additional 40 pips on the knee jerk to mark fresh 5-day lows of 0.6651 today where it has started to make a minor recovery on support.

NZD/USD levels

Technically, NZD/USD’s 200 SMA on the hourly at 0.6750 today has been broken and leaves the bird open to further downside pressures along with the bearish bias that has formed below the 200 DMA at 0.7003 with a key target of 0.6620, guarding a continuation of the downside.
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Source:: FX Street