NZD/USD turns negative for the first time in four sessions
|Having touched the highest level since Oct. 4, the NZD/USD pair reversed all of its gains and turned sharply lower, snapping three consecutive days of winning streak.
Currently trading at a fresh session low, around 0.7210-20 band, a broad based greenback strength, following the third and final US Presidential election debate that pointed towards a win for Hillary Clinton, triggered the initial leg of weakness for the pair.
Further downslide, however, was limited after Fitch Ratings affirmed New Zealand’s dairy giant, Fonterra Co-operative Group Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A', with the Outlook ‘Stable’.
Next in focus would be ECB monetary policy decision, which although might not directly impact the pair but would trigger volatility around the US Dollar and eventually provide some impetus for the pair. Later during NA session, US economic releases - Philly Fed manufacturing index, weekly jobless claims and existing home sales data, would be looked upon to grab short-term trading opportunities.
Technical levels to watch
From current levels, 0.7200 round figure mark seems to protect immediate downside below which the pair is likely to aim towards 100-day SMA support near 0.7180 region and the corrective move could further get extended towards 0.7165 horizontal support.
On the upside, 0.7235-40 area now becomes immediate hurdle, which if cleared is likely to lift the pair beyond session high resistance near 0.7265 level towards its next major resistance near 0.7300 handle.
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