NZD/USD approaches August lows as virus jitters compound recent downtrend

Technical Analysis

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NZD/USD down 0.7% to 0.6810, nears the August lows of 0.6805-09

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It is a big moment for NZD/USD buyers to step up and be counted here as we approach the August lows of 0.6805-09, which is a key support region for the pair.

A break below that and preferably under 0.6800 will likely see downside pressure accelerate with little standing in the way of a further push towards the 61.8 retracement level of the swing higher from March last year to February this year @ 0.6702 next.

The thing to be worried about in trading today is that it comes just ahead of a weekend and that is typically hard to see sentiment reverse, especially more so given holiday-thin conditions amid the Thanksgiving weekend in the US.

As such, just be wary that we could see a quick and sharp move lower in the kiwi if the technical support level above gives way.

The market is engulfed by fear surrounding the new COVID-19 variant and it doesn’t look like that will disappear by the end of the day at least.

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