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26 Aug 2014
NZD/USD: Corrective run off 0.8311 reaches 0.8335
FXStreet (Bali) - After posting a new 6-month low at 0.8311 in reaction to a lower-than-expected NZ trade balance, the NZD/USD has managed to rebound over 20-25 pips towards 0.8330-35.
While the weak NZ trade reading added downside pressure, oversold indicators coupled with a positive headlines from S&P affirming NZ's ratings, saw the rate run a corrective pullback seeking the next cluster of offers, with risks for another bearish price reversal, given the current negative sentiment towards the New Zealand Dollar, printing consistent losses vs the Greenback since mid July.
Jim Langlands, Founder at FXCharts, notes: "There is some short term bullish divergence which could induce a bit of a squeeze, but the overall trend remains lower and selling rallies towards 0.8370/0.8400 seems to be the overall plan looking for an eventual break of 0.8300 as we head towards 0.8275."
While the weak NZ trade reading added downside pressure, oversold indicators coupled with a positive headlines from S&P affirming NZ's ratings, saw the rate run a corrective pullback seeking the next cluster of offers, with risks for another bearish price reversal, given the current negative sentiment towards the New Zealand Dollar, printing consistent losses vs the Greenback since mid July.
Jim Langlands, Founder at FXCharts, notes: "There is some short term bullish divergence which could induce a bit of a squeeze, but the overall trend remains lower and selling rallies towards 0.8370/0.8400 seems to be the overall plan looking for an eventual break of 0.8300 as we head towards 0.8275."