NZDUSD plunge near previous support after CPI Surprise.
The USD is currently the strongest out of all the major currencies, but the NZDUSD is the most volatile at the moment as risk-averse sentiment is causing that pair to sharply decline.
The NZDUSD fell below a key support level at 0.60511 after stalling near a swing area between 0.6155 and 0.61664. The price came off modestly into the CPI data, but tumbled soon thereafter. The price fell back below its 100 and 200 hour moving averages at 0.60944 and 0.60855, before dipping briefly below a swing area between 0.60297 and 0.60511. The higher level at 0.60511 is now a close risk level, which corresponds with the swing low from September 2.
Last week’s low of 0.59956 just below natural support at 0.60000 represents the lowest level since May 2020. A move below 0.6000 and remaining below would target the April and May 2020 lows between 0.59089 and 0.5921, which is also near a downward sloping trendline.
