28 Jul 2014
Kiwi resumes its stone-like flight
FXStreet (Moscow) - NZD/USD started Monday with the gap higher at 0.8551 after closing at 0.8536 on Friday, but the upside was not sustained and the pair dipped to current level of 0.8541.
Is kiwi doomed?
NZD/USD finished the second deeply bearish week in a row, which is a gloomy sign for the longer-term kiwi perspective. But strictly speaking, weekly technical picture has not turned completely bearish yet, as the series of rising bottoms is not broken. It means that kiwi bulls might try to seize the power and drive NZD/USD at least to 0.8675 resistance are. This development would be regarded as a healthy correction from deeply oversold levels, but further upside is questionable as some kiwi bearish factors might come into play any time soon. Risk sentiments, RBNZ verbal interventions and milk prices - just to name a few. On the intraday basis NZD/USD might return to Friday’s low at 0.8536, where new buying interest is likely to limit further downside, while the upside might be limited by 0.8550.
What price levels and patterns have to be considered?
Current price is 0.8536, with resistance ahead at 0.8538 (Yesterday's Low), 0.8553 (Hourly 20 EMA), 0.8553 (Daily Open), 0.8555 (Monthly Low) and 0.8555 (Weekly Low).
Support below can be found at 0.8533 (Daily Low), 0.8532 (Daily Classic S1), 0.8510 (Daily Classic S2), 0.8488 (Weekly Classic S1) and 0.8481 (Daily Classic S3).
Regarding candlestick formations, we can see Dark Cloud Cover formation on the 4-hour .
Is kiwi doomed?
NZD/USD finished the second deeply bearish week in a row, which is a gloomy sign for the longer-term kiwi perspective. But strictly speaking, weekly technical picture has not turned completely bearish yet, as the series of rising bottoms is not broken. It means that kiwi bulls might try to seize the power and drive NZD/USD at least to 0.8675 resistance are. This development would be regarded as a healthy correction from deeply oversold levels, but further upside is questionable as some kiwi bearish factors might come into play any time soon. Risk sentiments, RBNZ verbal interventions and milk prices - just to name a few. On the intraday basis NZD/USD might return to Friday’s low at 0.8536, where new buying interest is likely to limit further downside, while the upside might be limited by 0.8550.
What price levels and patterns have to be considered?
Current price is 0.8536, with resistance ahead at 0.8538 (Yesterday's Low), 0.8553 (Hourly 20 EMA), 0.8553 (Daily Open), 0.8555 (Monthly Low) and 0.8555 (Weekly Low).
Support below can be found at 0.8533 (Daily Low), 0.8532 (Daily Classic S1), 0.8510 (Daily Classic S2), 0.8488 (Weekly Classic S1) and 0.8481 (Daily Classic S3).
Regarding candlestick formations, we can see Dark Cloud Cover formation on the 4-hour .