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NZD/USD headed for S1 with 1hr RSI giving green light?

FXStreet (Guatemala) - NZD/USD has been pressured along with its Aussie counterpart in a commodity bloc sell-off as oil continues to fall and markets are starting pay close attention.

The bird was making good tracks in its recovery from the 0.6420's lows of the last third of November's business scoring highs of 0.6658 but supply has taken the bird down to test the 200 SMA on the 4hr sticks on two occasions this week. The Oil sector is awash in supply on OPEC with new lows in Brent below $40 and WTI testing $36bbl. China also is a troublesome area as the trade surplus remains and exports continue to be very problematic as displayed in last nights trade balance data. Today we get CPI's for China as well.

NZD/USD levels

Technically, S1 is located deep at 0.6578 at the 100 4hr SMA. The 200 SMA on the same time frame is supporting the bird currently at 0.6610. A break of the 20 DMA at 0.6575 meeting the aforementioned S1 would be significant while RSI (14) on the 1hr sticks is at 46 and declining and offers room to the downside yet in the near term.

USD/JPY recovers from lows but remains capped by 123.00

USD/JPY bounced after hitting fresh daily lows at the 122.70 zone, as most crosses turned around during the American afternoon. USD/JPY moved off lows and trimmed intraday losses but the recovery remained capped by the 123.00 level. At time of writing, the pair is trading at 123.92, still 0.36% below its opening price.
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