NZD/USD Price Analysis: Off lows by more than 250 pips
- NZD/USD has recovered sharply from session lows.
- The pair is still trading under the 2020 descending trendline.
The NZD/USD pair is currently trading near 0.6280, having hit a low of 0.6008 an hour ago.
The flash crash in USD/JPY seen during the sixty minutes to 02:00 GMT weighed heavily over the NZD, pushing the NZD/USD pair down to lows near 0.60. That level was last seen in May 2009. The AUD/USD pair also took a beating during that one hour and fell to an 11-year low of 0.6314.
However, despite the sharp recovery from session lows, it is still too early to call a bullish reversal in NZD/USD, as the pair is yet to take out the trendline falling from Dec. 31 and Jan. 24 highs.
A close above that hurdle would put the bulls into the driver's seat and could yield rise to 0.6480, where the 200-day average is currently located.
Should the bounce from session lows fade near 0.63, a fresh move lower toward 0.62 will likely be seen, as the risk-off tone in markets is showing no signs of weakening.