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20 May 2014
NZD/USD approaching 0.86 support
FXStreet (Bali) - NZD/USD is getting into close contact to test bids at 0.86, with the latest slide driven by sales in AUD/USD, which saw stops taken out ahead of the RBA minutes release, which as anticipated, turned out to be a non-event.
The price action context in NZD/USD continues to be seen as range-bound between 0.87/.8720 and 0.85/.8520, with sellers remaining well camped very time NZD bulls make an attempt to take out the highs at 0.87. With the RBNZ fully embarked on a rate hike campaign that has been almost fully priced in, coupled with a prolonged period of USD weakness as the market is yet to be convinced about higher rates in the US anytime soon, looks like risks are increasing for downward pressures.
Technically, a break of May 9 low at 0.86 is necessary to accelerate to the downside, with targets seen at 0.8550 ahead of 0.8520 and 0.85. On the upside, resistance can be found at 0.8550 - sequence of highs from last week ahead of 0.9675 and 0.87.
The price action context in NZD/USD continues to be seen as range-bound between 0.87/.8720 and 0.85/.8520, with sellers remaining well camped very time NZD bulls make an attempt to take out the highs at 0.87. With the RBNZ fully embarked on a rate hike campaign that has been almost fully priced in, coupled with a prolonged period of USD weakness as the market is yet to be convinced about higher rates in the US anytime soon, looks like risks are increasing for downward pressures.
Technically, a break of May 9 low at 0.86 is necessary to accelerate to the downside, with targets seen at 0.8550 ahead of 0.8520 and 0.85. On the upside, resistance can be found at 0.8550 - sequence of highs from last week ahead of 0.9675 and 0.87.