Forex Analysis

NZD/USD is targeting lower levels – FBS

NZD/USD has met the resistance of the 200-day MA earlier this week (0.6500) and closed below the 100-day MA (0.6460) on Thursday. The pair resumed the downtrend as it got to the lowest levels since the start of December. The odds are that the price will be drawn to lower levels in the 0.6415/00 area (61.8% Fibonacci retracement of the October-December advance). Technical picture will improve only if NZD/USD returns above 0.6500. The medium-term target may be at 0.6320 (78.6% Fibo).

The main fundamental reason for the decline is that investors think that the USD is less vulnerable to the coronavirus. In addition, America has recently published some really good economic figures. The release of the US Nonfarm Payrolls on Friday will lead to a spike in volatility.

Trade idea for NZD/USD

SELL 0.6440; TP1 0.6400; TP2 0.6375; SL 0.6420

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