Nick Nasad
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NZD/USD - Will Downswing Extend or Was Today's Plunge a Buying Opportunity?

The burst of risk aversion that hit financial markets on Wednesday saw the Kiwi slide back to 1-week lows, falling below the 200-MA.

  • Does this move have further downswing to go?
  • After the small from the lows near 0.8355 there's a chance that the 200-SMA (in gray) will be used as a resistance level.
  • If so, we could be looking at a move back to the lows and beyond (the 0.83 handle).
  • If however this was a one-day move, we should monitor a break of 0.8435 as a key signal that the bulls have retaken control.

- Nick