NZD/USD breaks below 100-day SMA to 11-wk low; targets 0.7212 (S2)

By | December 16 2010 9:58 PM

NZD/USD broke below the 100-day SMA and plunged to a 11-week low late Thursday in New York on concerns about the kiwi currency's weakening fundamentals while a lack of confidence in euro added to the relative strength of the greenback.

NZD/USD at 11-week low

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At 9:44 pm GMT, the pair was at 0.7392, off an intra-day low of 0.73416, its lowest since October 1. NZD/USD had closed Wednesday at 0.7395.

The pair is now testing support at 0.7323 (S1) a break below which will take it to 0.7212 (S2), which lies close to the 200-day SMA.

If the pair moves up as indicated by momentum indicator RSI, then one should see initial resistance near 0.7431 (R1) and above that, 0.7575 (R2), which falls between the 20-day and 50-day SMAs. Further up, NZD/USD could stop around 0.76298.

NZD/USD
NZD/USD at 11-week low