11 Dec 2013
NZD/USD correcting lower after peaking out Tuesday; 0.8272 first support
FXstreet.com (Barcelona) - The NZD/USD managed to rally late Tuesday after dipping initially – thanks mostly to continued dumping of greenbacks globally. Traders seem to be betting Yellen will keep a dovish posture longer than most think.
NZD/USD traders will have to rely on US data and technicals Wednesday
With no New Zealand news / data due out until late in the afternoon in the US Wednesday, NZD/USD traders will be focused on how the cross reacts to US mortgage application data and US Monthly Budget data during US hours. Technicals will continue to play a big role in guiding traders in the periods between news items.
Technical outlook for NZD/USD
Elliott Wave technicians say the NZD/USD appears to have completed an ABC correction to the downside at approximately 0.8074 two weeks ago. Below 0.8074, 0.7951 would be the next step lower. First support for NZD/USD comes in at 0.8272 – which is very short-term “correction support”. The up move that has occurred since then has a chance at really taking off if the resistance at 0.8342 can be conquered. Resistance above 0.8342 comes in at the Fibonacci projections of 0.8409 and 0.8451.
NZD/USD traders will have to rely on US data and technicals Wednesday
With no New Zealand news / data due out until late in the afternoon in the US Wednesday, NZD/USD traders will be focused on how the cross reacts to US mortgage application data and US Monthly Budget data during US hours. Technicals will continue to play a big role in guiding traders in the periods between news items.
Technical outlook for NZD/USD
Elliott Wave technicians say the NZD/USD appears to have completed an ABC correction to the downside at approximately 0.8074 two weeks ago. Below 0.8074, 0.7951 would be the next step lower. First support for NZD/USD comes in at 0.8272 – which is very short-term “correction support”. The up move that has occurred since then has a chance at really taking off if the resistance at 0.8342 can be conquered. Resistance above 0.8342 comes in at the Fibonacci projections of 0.8409 and 0.8451.