16 Jul 2014
NZD/USD: flies like a bird, falls like a stone
FXStreet (Moscow) - NZD/USD briefly dipped below the pivotal 0.8700 leve to the Asian low of 0.8696; currently the pair is trading at 0.8705, but bears might resume their assault any time.
Held well, but gave up
NZD/USD dipped below 0.88 on Tuesday ahead of fateful New Zealand CPI report. Poor kiwi crashed to the support area of 0.8760, where it spend most of the NY and Asian session. The inflation in New Zealand came out lower than expected, which increased downside pressure on NZD. Aussie sell-off and shift in risk sentiments added some fuel to kiwi fire. Now the focus shifted onto US PPI index and the second act of Yellen’s show, though she is unlikely to divert from what she had already said. Now the first resistance level comes at 0.8725. if the bulls manage to get the pair above this area, the upside might extend to 0.8760. The support is seen at 0.8700 followed by 0.8670.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8700, and next resistance can be seen at 0.8710 (Daily Classic S2), 0.8738 (Weekly Classic S1), 0.8738 (Daily Classic S1), 0.8749 (Daily 20 SMA) and 0.8750 (Yesterday's Low).
Support below can be found at 0.8697 (Daily Low), 0.8669 (Daily Classic S3), 0.8663 (Weekly Classic S2), 0.8657 (Monthly Low) and 0.8613 (Weekly Classic S3).
Regarding candlestick formations, we can see Hammer formation on the 4-hour
Held well, but gave up
NZD/USD dipped below 0.88 on Tuesday ahead of fateful New Zealand CPI report. Poor kiwi crashed to the support area of 0.8760, where it spend most of the NY and Asian session. The inflation in New Zealand came out lower than expected, which increased downside pressure on NZD. Aussie sell-off and shift in risk sentiments added some fuel to kiwi fire. Now the focus shifted onto US PPI index and the second act of Yellen’s show, though she is unlikely to divert from what she had already said. Now the first resistance level comes at 0.8725. if the bulls manage to get the pair above this area, the upside might extend to 0.8760. The support is seen at 0.8700 followed by 0.8670.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8700, and next resistance can be seen at 0.8710 (Daily Classic S2), 0.8738 (Weekly Classic S1), 0.8738 (Daily Classic S1), 0.8749 (Daily 20 SMA) and 0.8750 (Yesterday's Low).
Support below can be found at 0.8697 (Daily Low), 0.8669 (Daily Classic S3), 0.8663 (Weekly Classic S2), 0.8657 (Monthly Low) and 0.8613 (Weekly Classic S3).
Regarding candlestick formations, we can see Hammer formation on the 4-hour