On Friday, better than expected US GDP propelled the US Dollar to gain across the board. The NZDUSD, not being an exception, portrayed the USD strength by reversing from 0.6775-80 resistance-zone and dropped below the 0.6630-25 support-area, encompassing 50-day SMA and a month old ascending trend-channel support, during early Monday. The pair presently seems aiming the quick test to 0.6500 support, breaking which 0.6420 – 0.6400 horizontal support-mark becomes an important technical level for the pair traders to watch. Should the pair continue on its southward trajectory below 0.6400, chances of its plunge to September 2015 lows, near 0.6300 round figure mark, can’t be denied.
Meanwhile, pair’s pullback from the current level needs to clear the 0.6630 mark before targeting the 0.6700 and the 0.6775-80 resistances. Moreover, pair’s daily close above 0.6780 can again fuel it towards 38.2% Fibonacci Retracement level of April – September 2015 downside, near 0.6815, clearing which 0.6890 – 0.6900 horizontal resistance-region, could limit its further upside, which if broken can further strengthen it towards breaking the 0.7000 psychological magnet.
Origin: Admiral Markets
