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NZD/USD is being sold off; 0.8420 support in sight

FXStreet (Moscow) - NZD/USD tumbled to the current Asian lows of 0.8424 after opening session at 0.8454; bears aim at previous week's low at 0.8420.

To the North again?

Kiwi has stuck in low to mid-84 range. From the short term perspective NZD is oversold, but we need to get above 0.85 handle to hope for a sustained recovery. On the other hand, a confirmed daily close below 0.8460 support ffollowed by a sustained break of the previous week's low at 0.8420 might pull the rug from under kiwi and open the way to 0.8400, where strong option related bids can limit the downside for the time being. NZ house prices indicator came out at -0.7% in July against -0.3% in June, which was not too helpful for kiwi and just intensified the sell-off. So now focus shifts onto US data as a possible trigger.

What price levels and patterns have to be considered?

Spot is presently trading at 0.8428, and next resistance can be seen at 0.8429 (Daily Classic S3), 0.8442 (Daily Classic S2), 0.8450 (Daily Classic S1), 0.8454 (Hourly 20 EMA) and 0.8455 (Yesterday's Low).

Support below can be found at 0.8425 (Daily Low), 0.8412 (Weekly Classic S1), 0.8363 (Weekly Classic S2), 0.8302 (Weekly Classic S3) and 0.8082 (YTD Low).

Regarding candlestick formations, we can see Doji formation on the 1-hour .

New Zealand REINZ House Price Index (MoM) dipped from previous -0.3% to -0.7% in July

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