By FXEmpire.com
The NZD/USD pair fell rapidly during the Thursday session as traders shunned anything risk-related in the markets. The slowdown that seems to be indicated by the Philly Fed numbers out of the US doesn’t bode well for commodities as it showed manufacturing slowing down. Less manufacturing, less commodities used – it’s that simple. Being a commodity currency, the Kiwi dollar suffered as a result.
Technically, the pair looks like it is entering a minor support area in the 0.82 range, and could bounce from this area. However, the fall was significant, and these moves almost never happen in a vacuum. The 0.8000 level will be vital to the future direction of this pair. We are willing to let this pair do whatever it wants over the next couple of sessions as the readiness to fall certainly has us doubting the bullishness of the buyers. Look for a bounce from 0.80, or at least a calming of the pair in order to buy. If we close on the daily chart below 0.80 – this could change many things about our analysis and none of them to the bullish side of the argument.
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