NZD/USD upside capped by 0.7800

Fxstreet.com (Edinburgh) - After hitting fresh 2013 lows in the proximities of 0.7680 on Monday, the kiwi dollar managed to pick up pace and lift NZD/USD to the boundaries of 0.7800, although failing to follow through.

NZD/USD keeps the bearish picture

According to I.Spivak, Currency Strategist at DailyFX, “Prices are testing support in the 0.7723-57 area marked ny a trend line set from August 2010 and the 50% Fibonacci expansion. A break below that initially targets the 61.8% level at 0.7678. Near-term resistance is at 0.7821, the 38.2% Fib, The appearance of a Doji candlestick points to indecision and hints bearish momentum may be ebbing”.

NZD/USD critical levels

As of writing, the pair is losing 0.11% at 0.7743 facing the immediate support at 0.7683 (low Jun.24) ahead of 0.7670 (low Jun.12 2012) and finally 0.7620 (low Jun.8 2012). On the upside, a break above 0.7791 (high Jun.24) would open the door to 0.7807 (high Jun.21) and finally 0.7894 (high Jun.20).

Session Recap: USD softer as risk aversion eases

The USD is steady to softer against the major currencies as stocks recovered on Tuesday, helped by reassuring words from the People's Bank of China on liquidity.
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