NZD takes the brunt of USD strength – Key levels ahead
|The NZD came under heavy pressure yesterday, taking the full force of broad USD strength and a clear shift into risk‑off sentiment. Kiwi has always been highly sensitive to global risk appetite, and yesterday it faced a double hit: NZD being sold and USD being bought, exaggerating the downside move.
The decisive break below 0.6004 was the trigger, setting off a chain reaction of selling as stops were hit and momentum accelerated.
As it’s a potential Reversal Thursday, the focus now is whether the market deteriorates further. The 0.5948–0.5935 zone is pivotal. A loss here exposes 0.5903, which aligns with the 50% Fib and S2.
On the topside, resistance is heavy between 0.5992 and 0.6004. Kiwi will need to work hard against immediate bearish technicals. A clean break above 0.6004 brings the short‑term M/As into play at 0.6027, intersecting with R1. A move through here would ease downside pressure and could tempt nervous buyers back in.
Further down, the 55‑ and 200‑day M/As at 0.5879/72 form a critical support band — unlikely to yield easily, with profit‑taking and defensive buying expected.
AUD/NZD remains stable above yesterday’s 1.1806 high. Keep an eye on this cross — it often signals whether AUD or NZD will lead the next move.
My Money. My Risk.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.