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FXStreet (Moscow) - NZD/USD is sitting in a tight range around 0.8516, off the Monday highs at 0.8528
Lying in wait
Kiwi pretends it is ready for a rally, but don’t fall for it as longer term kiwi perspectives are mired as it is deemed overvalued both by RBNZ officials and economists.. NZD/USD managed to recover to 0.8525 level after bottoming out at 0.8461 last week (Friday’s high at 0.8534 is still to be reached).The currency is likely to resume the downside after a short-lived upside correction as soon as USD starts growing across the board. Today’s Non-Manufacturing ISM might become a good fundamental trigger especially if it exceeds median expectations. NZD is a higher yielding currency, thus it is not an immediate beneficiary of strong dollar, but it won’t be left uninvolved in case of USD rally.
What price levels and patterns have to be considered?
Current price is 0.8517, with resistance ahead at 0.8518 (Hourly 20 EMA), 0.8523 (Weekly High), 0.8524 (Daily Open), 0.8529 (Yesterday's High) and 0.8530 (Daily High).
Support below can be found at 0.8516 (Daily Classic PP), 0.8512 (Weekly Classic PP), 0.8510 (Daily Low), 0.8503 (Hourly 100 SMA) and 0.8502 (Daily Classic S1).
Regarding candlestick formations, we can see Hammer formation on the 4-hour .
5 Aug 2014
NZD/USD happy to settle above 0.8500, what now?
FXStreet (Moscow) - NZD/USD is sitting in a tight range around 0.8516, off the Monday highs at 0.8528
Lying in wait
Kiwi pretends it is ready for a rally, but don’t fall for it as longer term kiwi perspectives are mired as it is deemed overvalued both by RBNZ officials and economists.. NZD/USD managed to recover to 0.8525 level after bottoming out at 0.8461 last week (Friday’s high at 0.8534 is still to be reached).The currency is likely to resume the downside after a short-lived upside correction as soon as USD starts growing across the board. Today’s Non-Manufacturing ISM might become a good fundamental trigger especially if it exceeds median expectations. NZD is a higher yielding currency, thus it is not an immediate beneficiary of strong dollar, but it won’t be left uninvolved in case of USD rally.
What price levels and patterns have to be considered?
Current price is 0.8517, with resistance ahead at 0.8518 (Hourly 20 EMA), 0.8523 (Weekly High), 0.8524 (Daily Open), 0.8529 (Yesterday's High) and 0.8530 (Daily High).
Support below can be found at 0.8516 (Daily Classic PP), 0.8512 (Weekly Classic PP), 0.8510 (Daily Low), 0.8503 (Hourly 100 SMA) and 0.8502 (Daily Classic S1).
Regarding candlestick formations, we can see Hammer formation on the 4-hour .