Fading demands for carry trades continues to favor a bearish outlook for the NZDUSD, and we may see the pair work its way lower to retest the November lows over the near-term.
Currency Pair: NZD/USD Chart: 60 Min Charts Short-Term Bias: Bearish
Analysis
Fading demands for carry trades continues to favor a bearish outlook for the NZDUSD, and we may see the pair work its way lower to retest the November lows over the near-term. After reaching a high of 0.6132 on 11/04, increased selling pressures dragged the pair to reach a low of 0.5196 last week, but have pared losses to hold above 0.5500. However, the kiwi-dollar looks to be hitting resistance near the 0.5550-60 level (38.2% Fib retracement level), and the divergence from the 120 SMA suggests that the pair will fall back to the downside, and may work its way down towards 0.5400 over the next day or so. If the pair breaks below the state level, we may see the pair fall back towards the 11/04 low over the following week. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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