Forex: NZD/USD edges lower to 0.8235/38 on risk aversion

FXstreet.com (Barcelona) - The kiwi has felt the bitterness of the Cypriot turmoil firsthand, suffering from an acute bout of risk aversion Tuesday afternoon during US trading. A previous recovery attempt was stonewalled at the 0.8250 mark, culminating in an overall downtrend that left the NZD/USD reeling at 0.8235/38.

According to the ICN.com analyst team, “The NZD/USD remained stable above the downtrend's key resistance and above its linear regression indicators – the stochastic proceeded to levels indicating the commencement of overbought status therefore, we maintain our positive expectations for today, unless the 0.8155 level is broken.”

Later this evening at 21:45 GMT, New Zealand is slated to release economic data, including the Current Account figures, which are expected to continue a negative trend in Q4.

At this juncture the cross has incurred a loss of -0.35% below its opening level. The ICN.com identify supports at 0.8225, down to the 0.8200 barrier, and finally 0.8185. Regarding a recovery, resistances will activate if the NZD/USD rises to 0.8275, onto of 0.8310, and 0.8355.