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Aug 21, 2014
NZD/USD: Bears staring 0.84 from the rear mirror
FXStreet (Bali) - NZD/USD is trading depressed at 0.8370 day lows following a more hawkish -than-anticpated FOMC minutes on Wednesday.
The pair saw an early decline in the last Asian session, tripping stops below 0.84 after trading heavy all week long on the back of a downgraded economic forecast by the NZ Treasury, NZ PPIs below expectations, a tepid NZ dairy auction, and just out in the current Asian session, we learnt that momentum in NZ job ads cooled in July.
From a technical perspective, Jim Langlands, Founder at FXCharts, notes that having left 0.84 behind, "there is not much support to hold it up and a deeper decline seems possible that would most likely head towards the next meaningful support levels at 0.8275/0.8300." Jim adds that "the short term charts remain negative and thus selling into near term rallies seem to be the plan."
The pair saw an early decline in the last Asian session, tripping stops below 0.84 after trading heavy all week long on the back of a downgraded economic forecast by the NZ Treasury, NZ PPIs below expectations, a tepid NZ dairy auction, and just out in the current Asian session, we learnt that momentum in NZ job ads cooled in July.
From a technical perspective, Jim Langlands, Founder at FXCharts, notes that having left 0.84 behind, "there is not much support to hold it up and a deeper decline seems possible that would most likely head towards the next meaningful support levels at 0.8275/0.8300." Jim adds that "the short term charts remain negative and thus selling into near term rallies seem to be the plan."