Forex Technical Update
NZD/USD daily chart 5/8/2012 11:00AM EDT
Commodity currencies like the CAD AUD and NZD are showing weakness against the USD in the current bout of risk aversion. As the USD/CAD pushes above parity and AUD/USD slides toward parity, the NZD/USD is in a free-fall as well since breaking below consolidation support and 200-day simple moving average at 0.8060. It is at another pivot around 0.7875. Below this, the next pivot is in the 0.7750-0.7770 area.
As the market continues to slide and get into a short-term oversold condition, any pullback outlook should be limited to the 0.8050-0.8060 area. If the market does indeed hold below the 200-day SMA, the downside is open toward the November and Dec 2011 lows. The support zone there is between 0.7350 and 0.75.
Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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