Kiwi up, loonie down vs. dollar

New Zealand dollar ends losing streak

Daily forex winners and losers

The New Zealand dollar is the top performer against a weaker dollar in early U.S. trade with an advance of 0.38% on the session. The greenback is on the defensive today despite continued losses in equity markets with risk appetite remaining heavy as stocks post their fourth consecutive day of declines. The kiwi broke above channel resistance in overnight trade before encountering resistance at the 61.8% Fibonacci extension taken from the March 8th and 19th crests at 8150. A breach here, eyes subsequent topside targets at 8175, the 38.2% extension at the 82 handle and 82.15. Interim support rests with the 78.6% extension at 8114 backed closely by former channel resistance (now support) and the 200-day moving average at 8093. A break below this level risks substantial losses for the kiwi with subsequent daily support targets seen at just below the 80-figure.

 

New Zealand dollar

Level/Indicator

Level

200-Day SMA

0.8093

100-Day SMA

0.7983

50-Day SMA

0.8236

2011 NZD HIGH

0.8842

 

The Canadian dollar is the weakest performer ahead of the European close with a decline of 0.20% against the greenback. Inflation data released this morning missed consensus estimates with the February CPI print coming in at 2.6% year over year, missing calls for a read of 2.7%. Weekly declines in crude prices and overall subdued demand for risk assets have continued to weigh on the loonie with the USDCAD posting a fourth day of consecutive advances, its longest winning streak so far this year. The move also marks the third consecutive week of declines for the loonie with the pair breaching above key trendline resistance dating back to Nov. 25 yesterday. Critical daily resistance stands at the 61.8% Fibonacci extension taken from the Oct. 4 and Nov.25 crests at 1.0050.

Canadian dollar

Level/Indicator

Level

200-Day SMA

1.0001

100-Day SMA

1.0109

50-Day SMA

0.9979

2011 CAD HIGH

0.9406

 

 

About the Author
Michael Boutros Michael Boutros, Currency Analyst for DailyFX.com is a Technical/Fundamental Analyst specializing in the FX markets. E-mail: mboutros@fxcm.com.
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