NZD/USD

Volatility in currencies keeps rising with GBP/USD breaking down a long-term support earlier during the month, JPY/USD rallying towards 95 levels over the past 2 months and now NZD/USD breaking down a strong 8 month-long trend line support. After the failed break above the horizontal resistance at 0.847 levels NZD/USD reversed sharply. First the cross rate breached the 200-day average at 0.84 levels and then broke down the medium/long-term trend support at 0.83 levels. This is a significant development and suggests further weakness for NZD. Unless we see cross rate pushing above 0.8350 levels in the following days we should expect lower levels on the NZD/USD.