25 Apr 2014
NZD/USD: Support at 0.8550 looks fragile
FXStreet (Bali) - NZD/USD continues to press against the 0.8550 support area after the Kiwi gave back all its early RBNZ-driven gains during Thursday.
According to market sources, the unwind long positions in NZD/JPY as the Ukraine crisis worsens, led to the NZD selling interest to increase significantly.
The daily chart show a sizeable bearish engulfing bar, which reinforces the worsened outlook on the pair short term, with the next big support in sight at 0.85/8510 should 0.8550 give in. On the upside, 0.86 continues to be an area where high tick activity has been seen ahead of 0.8640/50, level successfully defended by sellers in varies occasions since the sharp decline off .87+ levels.
According to market sources, the unwind long positions in NZD/JPY as the Ukraine crisis worsens, led to the NZD selling interest to increase significantly.
The daily chart show a sizeable bearish engulfing bar, which reinforces the worsened outlook on the pair short term, with the next big support in sight at 0.85/8510 should 0.8550 give in. On the upside, 0.86 continues to be an area where high tick activity has been seen ahead of 0.8640/50, level successfully defended by sellers in varies occasions since the sharp decline off .87+ levels.