NZDUSD extended losses

The New Zealand dollar extended its losses this week after hitting a 3 year old resistance level on the weekly chart. The American dollar´s recent strength weighed on its peers as investors turned away from riskier currencies. The USD is rising while gold hit a nine month low.

The NZDUSD pair ducked below its 50 moving average on the daily chart and is testing the January support level around 0.7100 (A). If the bears can continue in pushing the course lower, the 0.7030 – 0.7010 level could be an obstacle (B). Below this level the course could go into freefall until the October low around 0.6600 (C).  On the upside the course could test the previous relative high at 0.7310 (D) then climb back to the multiyear od resistance, which made the bears step in (E).