Back
4 Aug 2014
NZD/USD is nicely above 0.85 handle; more upside in store?
FXStreet (Moscow) - NZD/USD has settled right above 0.8500 pivot with current Asian high at 0.9518; trading activity is low as traders are waiting for new triggers to emerge later today.
A short respite for kiwi
Looks like kiwi might spend some time around 0.85 handle as traders need to digest the recent stone-like fall of this anitpodean currency. From macroeconomic point of view we have only NZ labour market report published on Wednesday, apart from this the calendar is next to empty. It means that NZD/USD dynamics will be shaped by general USD sentiments and technical factors. The pair has been declining for three weeks in a row and now both weekly and daily charts hint that bears a a bit tired. It means that the pair might consolidate and even attempt an upside correction from deeply oversold levels. On the intraday basis the upside is likely to be limited by 0.8534 (Friday’s high), while the downside movement might stop at 0.8500 support.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8512, and next resistance can be seen at 0.8523 (Daily High), 0.8536 (Yesterday's High), 0.8545 (Daily Classic R1), 0.8548 (Weekly High) and 0.8551 (Hourly 200 SMA).
Next support to the downside can be found at 0.8512 (Weekly Classic PP), 0.8510 (Daily Open), 0.8506 (Hourly 20 EMA), 0.8503 (Hourly 100 SMA) and 0.8503 (Daily Classic PP).
Looking at price patterns, we can see a Doji 4-hour candlestick formation.
A short respite for kiwi
Looks like kiwi might spend some time around 0.85 handle as traders need to digest the recent stone-like fall of this anitpodean currency. From macroeconomic point of view we have only NZ labour market report published on Wednesday, apart from this the calendar is next to empty. It means that NZD/USD dynamics will be shaped by general USD sentiments and technical factors. The pair has been declining for three weeks in a row and now both weekly and daily charts hint that bears a a bit tired. It means that the pair might consolidate and even attempt an upside correction from deeply oversold levels. On the intraday basis the upside is likely to be limited by 0.8534 (Friday’s high), while the downside movement might stop at 0.8500 support.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8512, and next resistance can be seen at 0.8523 (Daily High), 0.8536 (Yesterday's High), 0.8545 (Daily Classic R1), 0.8548 (Weekly High) and 0.8551 (Hourly 200 SMA).
Next support to the downside can be found at 0.8512 (Weekly Classic PP), 0.8510 (Daily Open), 0.8506 (Hourly 20 EMA), 0.8503 (Hourly 100 SMA) and 0.8503 (Daily Classic PP).
Looking at price patterns, we can see a Doji 4-hour candlestick formation.