- NZD/USD is recovering from new 2-month lows hit on Thursday after taking support by 100-DMA (currently at 0.6717).
- Minor-recovery seen in the oil prices and the Asian equities, helping lift demand for higher-yielding currencies.
- Our previous call (http://www.econotimes.com/FxWirePro-Kiwi-on-the-back-foot-NZD-USD-slips-below-078-handle-good-to-sell-rallies-209544) has hit all targets. Further weakness only on breaks below 100-DMA at 0.67.
- Focus now shifts towards the US existing home sales and Fed speak due later in the NY session.
- To the upside, the next resistance is located at 0.6769(5-DMA), above which it could extend gains to 0.6800.
- To the downside immediate support might be located at 0. 6736 (cloud base) and then at 0.6717 (100-DMA).
- Stochs are at oversold levels which suggest some pullback, however longer term bias is lower. We advise waiting for further confirmation to take any trading call.
The material has been provided by InstaForex Company – www.instaforex.com