NZD/USD is under downside correction, intraday low of 0.8624 is in sight

FXStreet (Moscow) - Currently, NZD/USD is trading at 0.8641, down -0.44% on the day, having posted a daily high at 0.8686 and low at 0.8624.

Kiwi bird needs some rest

NZD/USD started the downside correction after riding to multi-year high at 0.8747. On Thursday the pair dropped below 0.8700, on Friday the downside accelerated on the back of lower than expected Chinese CPI numbers and boor risk sentiments. Chinese officials say that the weaker numbers was caused by seasonal price drop on fresh fruits and vegetables, but markets are still nervous about the state of the second largest economy in the world. From the long term perspective the NZD/USD bullish trend is still intact, while on intraday basis the correction may take the pair lower to 0.8600. The upside will be capped by 0.8700.

What price levels and patterns have to be considered?

Current price is 0.8643, with resistance ahead at 0.8657 (Daily Classic S1), 0.8663 (Hourly 100 SMA), 0.8673 (Hourly 20 EMA), 0.8678 (Yesterday's Low) and 0.8682 (Daily Open).

Next support to the downside can be found at 0.8633 (Daily Classic S2), 0.8628 (Hourly 200 SMA), 0.8624 (Daily Low), 0.8606 (Weekly Classic PP) and 0.8600 (Weekly Low).

Looking at price patterns, we can see a Doji 1-hour candlestick formation, .