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.

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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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.