30 Aug 2013
NZD/USD pressures 0.7750 bids, inverted day pin bar
FXstreet.com (Barcelona) - NZD/USD is pressing against bids through 0.7750 in twilight Asia, with the rate showing signs of premature weakness as buyers struggle to keep the 0.78, which failed to be regained after a series of attempts through the US.
Inverted pin bar on the daily
From a daily perspective, an early attempt to recover above 0.78 in the last Asian session saw heavy USD buying in Europe, which persisted along US, printing an inverted pin bar which puts pressure to the downside.
Where to from here?
If selling sees follow through in Tokyo, the next formidable area of support is noted at 0.77 round number, reliable area containing sellers late June/early July. A break below would open up much deeper retracements.
On the upside, risk to cheaper quotes are negated only on a break and hold above 0.7875, which would then expose 0.7930 intraday level, which may subsequently need to a 0.77-0.8135 day range extension.
Fundametal facts that might be quite 'telling'...
On the fundametal domain, the Kiwi continues to be largely driven by geopolitical/risk sentiment rather than local indicators. The latest prove was observed earlier this week, when New Zealand Ministry for Primary Industries confirmed Fonterra dairy products were 'botulism-free', which should have been NZD positive instead of being completely shrugged-off. As a reminder for readers, botulism-intoxicated products was reportedly the main reason banning certain Fonterra exports in countries such as China or Russia earlier this month.
Inverted pin bar on the daily
From a daily perspective, an early attempt to recover above 0.78 in the last Asian session saw heavy USD buying in Europe, which persisted along US, printing an inverted pin bar which puts pressure to the downside.
Where to from here?
If selling sees follow through in Tokyo, the next formidable area of support is noted at 0.77 round number, reliable area containing sellers late June/early July. A break below would open up much deeper retracements.
On the upside, risk to cheaper quotes are negated only on a break and hold above 0.7875, which would then expose 0.7930 intraday level, which may subsequently need to a 0.77-0.8135 day range extension.
Fundametal facts that might be quite 'telling'...
On the fundametal domain, the Kiwi continues to be largely driven by geopolitical/risk sentiment rather than local indicators. The latest prove was observed earlier this week, when New Zealand Ministry for Primary Industries confirmed Fonterra dairy products were 'botulism-free', which should have been NZD positive instead of being completely shrugged-off. As a reminder for readers, botulism-intoxicated products was reportedly the main reason banning certain Fonterra exports in countries such as China or Russia earlier this month.