25 Feb 2015
NZD/USD rises above 0.7550, gains capped at 50-DMA
FXStreet (Mumbai) - The Kiwi gained sharply against the US dollar, taking the NZD/USD pair above 0.7550, although further gains are being capped at the 50-DMA located at 0.7555 levels.
NZD recovers losses triggered by inflation data
The Kiwi had suffered sharp losses in the previous session after the Reserve Bank of New Zealand said its inflation expectation two-years ahead dropped to 1.8% in the first quarter, down from 2.06% in the fourth quarter. The pair hit a low of 0.7420 before witnessing a sharp recovery to trade above 0.7550 levels today on the back of dovish comments from the Fed chief Janet Yellen in her testimony to congress.
NZD/USD Technical Levels
The immediate resistance is seen at 0.7555 (50-DMA), above which gains could be extended to 0.7607 (Dec. 9 low). On the flip side, support is seen at 0.7522 and 0.7517 (5-DMA & 10-DMA), under which losses could be extended to 0.7450 levels.
NZD recovers losses triggered by inflation data
The Kiwi had suffered sharp losses in the previous session after the Reserve Bank of New Zealand said its inflation expectation two-years ahead dropped to 1.8% in the first quarter, down from 2.06% in the fourth quarter. The pair hit a low of 0.7420 before witnessing a sharp recovery to trade above 0.7550 levels today on the back of dovish comments from the Fed chief Janet Yellen in her testimony to congress.
NZD/USD Technical Levels
The immediate resistance is seen at 0.7555 (50-DMA), above which gains could be extended to 0.7607 (Dec. 9 low). On the flip side, support is seen at 0.7522 and 0.7517 (5-DMA & 10-DMA), under which losses could be extended to 0.7450 levels.