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NZD/USD extends decline, approaches 0.8500

FXStreet (Córdoba) - The NZD/USD fell to 0.8526 in Asia, breaking below FOMC lows, as the US dollar remains strong in the currency market. After a short lived recovery that was capped by 0.8570 the pair turned again to the downside, particularly after the release of GDP data from New Zealand.

Technical outlook for the NZD/USD

The price is approaching an important support level located at 0.8515/20 (March 13, 14 and 17 lows) as it holds near daily lows.

“We are currently sitting on the 200 HMA, a break of which would head towards the initial support at 0.8500 which should be strong”, says Jim Langlands, from FX Charts and points out that a break of 0.8500 would hint at a deeper decline possibly towards 0.8425 and 0.8415.

According to Langlands, if the NZD/USD rises above 0.8568 it would open the doors toward 0.8600, “but looks unlikely to be seen for a while although for the time being the medium term uptrend is intact”.

CORRECTION: AUD/USD headed towards 200% fib extension circa 0.90

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