NZD/USD breaks below 100-DMA support

Haresh Menghani FXStreet

The NZD/USD pair extended Thursday's rejection from 50-day SMA and dropped further below 0.7200 handle to break below 100-day SMA.

Currently trading near 0.7170 region, the pair traded lower for the second consecutive day amid broad based US Dollar strength primarily led by ECB-led selling pressure around the EUR/USD major. Moreover, hawkish speech from Federal Reserve New York President William Dudley revived hopes of an eventual Fed rate-hike action by the end of this year and is further weighing on higher-yielding currencies - like Kiwi.

With an empty economic docket, broader sentiment surrounding the greenback would remain the sole driver of the pair's trajectory on Friday, while investor expectations of further rate-cut by RBNZ at its November meeting would also contribute towards determining the pair's next leg of directional move.

Technical levels to watch

From current levels, a follow through weakness below 0.7165 horizontal support is likely to accelerate the slide immediately towards 0.7135 support before eventually dropping to 0.7100 round figure mark. On the upside, recovery back above 0.7185 region (100-day SMA) might lift the pair beyond 0.7200 handle towards 0.7220 resistance. However, major upside hurdle remains at 50-day SMA near 0.7250 region.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.7083

29% Bullish
57% Bearish
14% Sideways

Bias Bearish

1 Month

Avg Forecast 0.6984

10% Bullish
60% Bearish
30% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.6989

31% Bullish
54% Bearish
15% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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