- NZD/USD witnessed some aggressive selling during the early North American session on Friday.
- The sharp slide took along some intraday trading stops near the 0.6650-45 confluence support.
- Bears might now aim to test the 0.6575 region (weekly lows) amid mounting US-China tensions.
The NZD/USD pair tumbled to fresh session lows, around the 0.6600 mark on reports that the US administration is considering imposing personal sanctions on Hong Kong leader Carrie Lam.
This comes after the US President Donald Trump signed executive orders banning transactions with popular Chinese apps – Tencent's WeChat and ByteDance's Tiktok. This, in turn, fueled worries about a further escalation of tensions between the world's two largest economies and boosted the US dollar's status as the global reserve currency.
Meanwhile, the latest leg of a steep fall over the past hour or so could further be attributed to some technical selling below the 0.6645 confluence support. The mentioned region comprised of 200-hour SMA and the lower boundary of weekly ascending trend-channel. A convincing breakthrough was seen as a key trigger for bearish traders.
Meanwhile, technical indicators on the 4-hourly chart have just started drifting into the bearish territory and support prospects for further weakness. However, RSI (14) on the 1-hourly chart is already pointing to slightly oversold conditions. This coupled positive oscillators on the daily chart warrant some caution for bearish traders.
That said, the pair still seems vulnerable to slide back to test weekly lows support, around the 0.6575 region. Some follow-through selling now seems to accelerate the fall further towards the 0.6525 intermediate support en-route the key 0.6500 psychological mark.
On the flip side, any meaningful recovery attempt might still be seen as an opportunity to initiate some fresh bearish positions and seems more likely to remain capped near the 0.6650-45 confluence support breakpoint.
NZD/USD 1-hourly chart
Technical levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.