NZDUSD Following A Downward Slope

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The New Zealand dollar managed to trade higher to test 0.7600 recently against the US dollar. However, it found resistance around the mentioned area and moved lower. Currently, the pair is testing an important support around the 0.7520 levels, which if breached might open the doors for more losses in the near term. Today, in the US, the Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance will be released by the US Department of Labor. The market is expecting an increase in the US jobless claims this time. So, any better data could help the US dollar in the short term.

There is a monster bearish trend line formed on the hourly chart of the NZDUSD pair, which is acting as a barrier for the pair. The pair recently managed to settle below the 100 hour simple moving average, which was an important bearish sign in the short term. However, there was one more side, as the pair found support around the 200 hour MA, and currently correcting higher. Let us see how sellers react around the highlighted trend line, as there is a chance of a failure moving ahead. A break below the 200 hour MA might be considered as a sell signal, which could take the NZDUSD pair towards the 0.7500 levels.

NZDUSD 04.09.2015

If the NZDUSD pair breaks higher and moves above the stated trend line, then it could head towards the 0.7580 level.

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

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