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5 Jun 2014
Wounded kiwi scratches 0.8430 resistance
FXStreet (Moscow) - NZD/USD managed to reverse some losses; the bulls are desperate to overcome 0.8430 hurdle to get a chance to climb to 0.8450.
The time for correction is ripe
Kiwi crept up to the psychologically and technically important support of 0.8400 on Wednesday, but managed to recover to 0.8426 by the end of the day. Thus we have three consecutive days of decline and a series of lower lows and highs on daily charts. It means that investors are bearish about NZD/USD, but the pair might be in for an upside correction before a new rush lower. Profit-taking on short kiwi positions ahead of the strong support and weaker USD are the factors behind a potential NZD/USD reversal to the resistance of 0.8450 on the intraday basis
What price levels and patterns have to be considered?
Current price is 0.8435, with resistance ahead at 0.8440 (Daily High), 0.8440 (Weekly Classic S1), 0.8443 (Daily Classic R1), 0.8444 (Yesterday's High) and 0.8455 (Hourly 100 SMA).
Next support to the downside can be found at 0.8431 (Monthly Low), 0.8431 (Weekly Low), 0.8424 (Hourly 20 EMA), 0.8422 (Daily Classic PP) and 0.8421 (Daily Open).
The time for correction is ripe
Kiwi crept up to the psychologically and technically important support of 0.8400 on Wednesday, but managed to recover to 0.8426 by the end of the day. Thus we have three consecutive days of decline and a series of lower lows and highs on daily charts. It means that investors are bearish about NZD/USD, but the pair might be in for an upside correction before a new rush lower. Profit-taking on short kiwi positions ahead of the strong support and weaker USD are the factors behind a potential NZD/USD reversal to the resistance of 0.8450 on the intraday basis
What price levels and patterns have to be considered?
Current price is 0.8435, with resistance ahead at 0.8440 (Daily High), 0.8440 (Weekly Classic S1), 0.8443 (Daily Classic R1), 0.8444 (Yesterday's High) and 0.8455 (Hourly 100 SMA).
Next support to the downside can be found at 0.8431 (Monthly Low), 0.8431 (Weekly Low), 0.8424 (Hourly 20 EMA), 0.8422 (Daily Classic PP) and 0.8421 (Daily Open).