NZD/USD flirting with 50-DMA support

Haresh Menghani FXStreet

The NZD/USD pair, once again, managed to rebound from 50-day SMA support but has failed to build on to its recovery momentum and maintained its offered tone.

Currently trading around 0.7235-40 region, the pair came under renewed selling pressure on Monday after New-Zealand trade balance for August missed expectations and came-in at -1265 million, led by an unexpected rise in imports and sharper-than-expected decline in exports. The data provided little incentive for bulls and the pair dropped to monthly lows.

Moreover, rising expectations of further RBNZ interest rate cut at is meeting in November coupled with bearish sentiment surrounding equity markets has failed to extend any support for the kiwi.

Traders now look forward to the release of new home sales data from the US, later during NA trading session, in order to grab some short-term trading opportunities.

Technical levels to watch

A follow through selling pressure below 0.7220 level (session low), the pair is likely to extend its bearish momentum even below 0.7200 handle towards 0.7180-70 strong horizontal support. Meanwhile on the upside, recovery momentum above 0.7250 immediate resistance could get extended beyond 0.7300 handle but is likely to be capped at a strong horizontal resistance near 0.7315-20 area.

Sell 25%

Buy 75%

Avg Sell Price 0.7300

Avg Buy Price 0.7245

Liquidity Distribution

Author

Haresh Menghani

FXStreet

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

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.