Chart Of The Day: NZDUSD Again Confronts 200-day SMA

February 05, 2016 06:17

NZDUSD's recovery rally from 0.6400 area, coupled with upbeat New-Zealand job numbers, fueled the pair towards surpassing the 100-day SMA and the 23.6% Fibonacci Retracement of its April – September 2015 downside by printing the highest level in a month; though, 200-day SMA again stopped the pair's advance on Thursday and make it witnesses pullback moves on early Friday towards testing 0.6650-45 immediate support. On a further decline below 0.6645, the 0.6600 – 0.6590 region, encompassing 100-day SMA and 23.6% Fibo confluence, becomes important for pair traders to consider, breaking which the pair's extended south-run can drag the prices to test four month old ascending trend-line, near 0.6430, which if broken can fetch the pair to re-visit September lows, near 0.6230.

Should the pair closes above 200-day SMA level, presently at 0.6715-20, it becomes capable enough to head towards 38.2% Fibo, at 0.6800, prior to matching the 0.6870-90 important horizontal resistance-zone. Moreover, the pair's successful break above 0.6890, also clearing the 0.6900 round figure mark, can propel its northward trajectory towards 0.7000 and the 0.7100 consecutive upside resistances.

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