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There were a few Asian currencies, which were seen weakening against the US dollar, including the New Zealand dollar and the Australian dollar. The NZDUSD pair traded lower and tested the 0.7560-70 support area. There is a major support on the way down for the pair, but it remains under bearish pressure, which means there is a chance that the pair might dive and break the last low to trade towards the 0.7500 handle. Today, the US Initial Jobless Claims will be released by the US Department of Labor. The market is expecting a decline from 291K to 290K. Let us see dollar trade after the release.

There is an important support trend line formed on the hourly chart of the NZDUSD pair, which is protecting downsides in the pair. There is a critical thing to note from the chart i.e. the fact that the pair is now trading below the 100 hour simple moving average, which can be considered as a bearish sign. The pair is currently consolidating, and there is a possibility of it trading a bit higher. An immediate resistance can be seen around the 23.6% fib retracement level of the last leg from the 0.7691 high to 0.7569 low. The 100 hour MA is also around the same area, which means the 0.7600 area is a major barrier for buyers.

On the downside, a break below the highlighted trend line could ignite sharp declines in the NZDUSD pair, which might take it towards 0.7500.

Overall, one might consider selling rallies in the NZDUSD pair as long as it stays below the 100 hour MA.

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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com