NZDUSD Is Going Nowhere But Down

NZDUSD Is Going Nowhere But Down

21 August 2014, 04:26
Zheng He
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Today’s close marks a very critical point for NZDUSD. Taking a look at the daily chart, NZDUSD is currently testing a support zone. Taking a look at the chart shot, it appears the pair is already crossing over, but it is never a good idea to act on the current bar as its formation is still underway. Keeping that in mind, here’s the chart:

 

This resistance zone turned support in June, 2014 and rallied up quite a bit reaching a new high before crashing down. The current day’s bar is looking to cut through this zone and if today’s daily change is large enough, this support zone is no longer valid. This would mean the price would continue falling to either one of the two trend lines before we see any serious attempts at reversal.

 

The weekly chart actually shows this in action. Two different sets of trend lines can be drawn marking potential reversal points. The projected fall is around 360 pips to right on the 0.8000 price zone. That is, of course, examining how price behaves after today’s close. The chart shot shows two price hitting the moving average as support and we may see this one more time soon. Nevertheless, the bias is still on the short side due to strong U.S. economic fundamentals. 

Original Publish: PriceWorksFX.com 

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