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27 May 2014
NZD/USD bulls got scared by 0.8580 resistance
FXStreet (Moscow) - NZD/USD is trading at 0.8562, up 0.15% on the day, having posted a daily high at 0.8582 and low at 0.8539.
Kiwi in consolidation mood
NZD/USD rebounded from the support level of 0.8526 and managed to finish Monday in a green zone. Bullish follow up early in Asia today may suggest that the pair has formed a local bottom, but, fundamentally, another disappointment in yesterday’s New Zealand Trade Balance data only gave the market another reason to believe the RBNZ will slowdown the process of tightening, as the economy is still showing very fragile recovery. The absence of significant economic events during the week ahead may leave the pair in consolidation mood, though some attacks on the nearest support level around 0.8550 are not ruled out. The upside dynamic is likely to be capped by 0.8570/80
What price levels and patterns have to be considered?
Spot is presently trading at 0.8562, and next resistance can be seen at 0.8563 (Daily Classic R1), 0.8576 (Weekly High), 0.8577 (Weekly Classic PP), 0.8578 (Daily Classic R2) and 0.8582 (Daily High).
Support below can be found at 0.8559 (Yesterday's High), 0.8558 (Hourly 100 SMA), 0.8555 (Hourly 20 EMA), 0.8550 (Daily Open) and 0.8546 (Weekly Low).
Regarding candlestick formations, we can see Doji and Hammer formation on the 1-hour .
Kiwi in consolidation mood
NZD/USD rebounded from the support level of 0.8526 and managed to finish Monday in a green zone. Bullish follow up early in Asia today may suggest that the pair has formed a local bottom, but, fundamentally, another disappointment in yesterday’s New Zealand Trade Balance data only gave the market another reason to believe the RBNZ will slowdown the process of tightening, as the economy is still showing very fragile recovery. The absence of significant economic events during the week ahead may leave the pair in consolidation mood, though some attacks on the nearest support level around 0.8550 are not ruled out. The upside dynamic is likely to be capped by 0.8570/80
What price levels and patterns have to be considered?
Spot is presently trading at 0.8562, and next resistance can be seen at 0.8563 (Daily Classic R1), 0.8576 (Weekly High), 0.8577 (Weekly Classic PP), 0.8578 (Daily Classic R2) and 0.8582 (Daily High).
Support below can be found at 0.8559 (Yesterday's High), 0.8558 (Hourly 100 SMA), 0.8555 (Hourly 20 EMA), 0.8550 (Daily Open) and 0.8546 (Weekly Low).
Regarding candlestick formations, we can see Doji and Hammer formation on the 1-hour .