NZD/USD To Trade Lower
Asia-Pacific exchange net America 2010-01-22 07:56:44
NZD/USD to trade lower. Pair suppressed by softer commodity prices, unwinding of long-NZD carry trades on heightened risk aversion. But NZD/USD losses tempered by Kiwi-U.S. yield advantage, weaker USD sentiment, positions adjustment before weekend. NZD/USD daily chart negative-biased as MACD & stochastics bearish; 5-day moving average staged bearish crossover against 15-day. Support at 0.7080 (76.4 Fibonacci retracement of 0.6969-0.7441 Dec. 23-Jan. 14 advance); breach would expose downside to 0.6969 (Dec. 23 trough), then 0.6898 (previous cap set Aug. 25) and 0.6799 (200-day moving average). Resistance at 0.7173 (hourly chart); breach would expose upside to 0.7233 (yesterday''''s high), then 0.7284 (previous base set Jan. 8), 0.7363 (Wednesday''''s high) and 0.7408 (Tuesday''''s high).