NZD/USD Plunges

Governor Wheeler spoke his piece earlier today and as a result the Kiwi dropped like a brick from a 3rd floor window. After making a 3 month high yesterday at 0.8163 against the USD, the pair has since fallen to 0.7980 at time of writing, an almost $2 slide in 24 hours with half of that coming in the last few hours alone. Bearish divergence can be seen on the Daily chart with the market making higher highs yesterday than on the 25th of July, but Stochastic indicators show a lower high for yesterday than back in July. Support at 0.7970 awaits and could hinder the bears run as it is mixed with the 4 hour 200 EMA. Below 0.7960 is the 50% retracement level and Monthly Pivot at 0.7925 followed by a strong support level at 0.7850 where the pair spent a couple weeks in June failing for the most part to break above. Resistance remains at 0.8090 and more importantly, 0.8160 where lows from December 2012 and March 2013 can be seen.



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