Forex: NZD/USD recovers the 0.8400 mark

The New Zealand dollar stole the spotlight overnight after RBNZ Governor Wheeler appeared to talk down the currency. According to Research Analyst Gareth Berry at UBS, “It was mostly a matter of perception however the earlier 60 pip drop in the NZD/USD was the result of a handful of carefully-chosen phrases, delivered in the correct sequence, with the correct emphasis.” After bottoming out in the 0.8393 region (session low) earlier today during the onset of European trading, the pair has recovered the mark of 0.8408/10 in these moments.

Presently, the pair is trading in the doldrums, down -0.71% Wednesday. The ICN.com technical analyst team points to the supports at 0.8400 (pivotal barrier) onto 0.8385, and finally the 0.8355 level. Conversely, a prolonged recovery movement above the 0.8415 handle will rekindle resistances at the 0.8450 onto 0.8480.

According to the ICN.com Technical Analyst Team, “The NZD/USD dropped below its linear regression indicators, clearly weakening positivity, especially that the RSI broke 50 levels to the downside. However, trading within the ascending channel in addition to the 0.8355 level promotes stability and keeps the possibility of the upside move valid. We need new confirmations first, therefore we will remain neutral in the European Session.”