The kiwi tops the performance charts early in North American trade with an advance of 1.25% against a weaker dollar. Global equities have continued to rally, boosting demand for higher yielding growth linked assets with the New Zealand dollar surging against all of its major counterparts. The NZD/USD pair broke above interim resistance at the 23.6% Fibonacci extension taken from the August 8th and September 12th troughs at 0.8260 early in the New York session. Topside resistance now stands at the 38.2% extension at 0.8350 backed by 0.8380 and the 50% extension at 0.8420. Interim support now rests at former resistance with subsequent floors seen at the 0.82-figure, 0.8160 and 0.8115.
Key Levels/Indicators
|
Level/Indicator |
Level |
|
50-Day SMA |
0.8406 |
|
20-Day SMA |
0.8332 |
|
10-Day SMA |
0.8263 |
|
2011 NZD High |
0.8842 |
The swissie was the worst performer an hour into US trade, sliding 0.56% against the greenback. The USD/CHF pair broke above interim resistance at 0.8725 in pre-market trade before encountering strong headwinds at 0.8760. This level is likely to holds as the dollar continues to slide with investors jettisoning safety assets in favor of yields. The pair remains range-bound within a well defined descending channel dating back to September 11th noting interim support at 0.8725, 0.8680, and 0.8620. Topside resistance holds at 0.8760 with subsequent ceilings eyed at the 0.88-figure, 0.8845, and 0.8925.
Key Levels/Indicators
|
Level/Indicator |
Level |
|
50-Day SMA |
0.8076 |
|
20-Day SMA |
0.8323 |
|
10-Day SMA |
0.8644 |
|
2011 CHF High |
0.7079 |
Michael Boutros, Currency Analyst for DailyFX.com is a Technical/Fundamental Analyst specializing in the FX markets. E-mail: mboutros@fxcm.com.
Twitter: @MBForex
WEB: www.fxcm.com
