Brocker.Org: NZD/USD: 4hr 200 EMA at 0.6937 anchoring the rally


Currently, NZD/USD is trading at 0.6925, up 0.62% on the day, having posted a daily high at 0.6943 and low at 0.6878.

U.S. Treasury yields fall amid flight to safety

The Trump allegations have sent the USD into a tailspin and US treasuries are paid right down to 2.2364% the low so far in the 10 years. The Yen has also been a driver, with NZD/JPY adding weight in London today as USD/JPY busted below the 112 handle to 111.21 the low in the US shift. 

All the latest on Trump:

“Comey memo says Trump asked FBI Chief to drop Flynn probe” was the FT headline on the story that roiled markets overnight and that extended into today’s European/London and US shifts. The question now is whether this is a short-lived quake after the initial tremors of late around this situation in the markets or whether a tsunami and long lasting damage are on the horizon for the US political and economic climate, the dollar and risk?

NZD/USD levels

0.6920/50 is the immediate resistance area where the 200 4hr EMA is located, anchoring in the Kiwi. A break through the midpoint opens up the 0.7000 level. Then there are the 17th April highs of 0.7035 ahead of 0.7060/70, being a further key resistance area through the 200-d ema (0.7037). The double bottom at 0.7130 as the mid-Feb lows could be a strong area of resistance. To the downside, 0.6880, where the 4hr ma’s gather and 0.6840 are the near term supports.