10 Oct 2013
NZD/USD grinds significantly lower on greenback “profit-taking”
FXstreet.com (Athens) – The NZD/USD has been trading consistently lower since the early opening of the Asian trading session mostly due to the fact that “Yellen’s nomination” spurred hopes across the board regarding the US issues, but mostly on the investors closing their position to take their profits.
NZD/USD grinds significantly lower on greenback “profit-taking”
The NZD/USD is trading heavily downwards since the kick off of the Asian trading session since after yesterday’s Yellen nomination, investors made their best efforts to close their positions on profit taking. Apart from that, we should also bear in mind that the “kiwi” is one of the most volatile crosses and since the last week was in a very confined trap of approximately 60 pips, therefore a break-out was everything else but out of the blue. On the other hand, “kiwi” does usually track the trend of its antipodean cousin, but today despite Aussie’s outperformance on better labor data, the “kiwi” is on the opposite trend shift.
Technical Aspects on NZD/USD
Many analysts consider that the political drama show-off of the US debt ceiling is an “old hat story” and seems no political power – Republican or Democratic – wants to lead the US to another financial crisis, therefore the lawmakers will finally raise the debt-ceiling. Indeed, the issue might drag on a bit, but finally a solution will be reached till the 17th October as of 2013. At the time of writing the cross is trading at 0.8240, down 0.79%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart. Daily pivot point support and resistance can be found at S3: 0.8220 S2: 0.8189 S3:0.8147 R1: 0.8403 R2: 0.8424 R3: 0.8445
NZD/USD grinds significantly lower on greenback “profit-taking”
The NZD/USD is trading heavily downwards since the kick off of the Asian trading session since after yesterday’s Yellen nomination, investors made their best efforts to close their positions on profit taking. Apart from that, we should also bear in mind that the “kiwi” is one of the most volatile crosses and since the last week was in a very confined trap of approximately 60 pips, therefore a break-out was everything else but out of the blue. On the other hand, “kiwi” does usually track the trend of its antipodean cousin, but today despite Aussie’s outperformance on better labor data, the “kiwi” is on the opposite trend shift.
Technical Aspects on NZD/USD
Many analysts consider that the political drama show-off of the US debt ceiling is an “old hat story” and seems no political power – Republican or Democratic – wants to lead the US to another financial crisis, therefore the lawmakers will finally raise the debt-ceiling. Indeed, the issue might drag on a bit, but finally a solution will be reached till the 17th October as of 2013. At the time of writing the cross is trading at 0.8240, down 0.79%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes chart. Daily pivot point support and resistance can be found at S3: 0.8220 S2: 0.8189 S3:0.8147 R1: 0.8403 R2: 0.8424 R3: 0.8445