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7 Jul 2014
NZD/USD is gripped by bearish sentiments
FXStreet (Moscow) - NZD/USD dipped to new low 0.8713 in Asia and entered a short consolidation phase, waiting for new triggers
Bulls have lost control
Kiwi continued decline on Friday, despite low liquidity environment due to US Independence day. NZD/USD finished Friday on intraday low of 0.8330, though, still higher that the weekly minimum at 0.8317 reached on Thursday. Technically, this dynamics confirms the idea the the pair has topped out at 0.8793 and now is getting ready for a deeper decline. The first line of support is seen at 0.8700. This level served as a strong resistance for the bulls and now it’s the bears’ turn to do a stiff job. Once we are below this level, 0.8660 (June 25 low) will come into play.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8721, and next resistance can be seen at 0.8727 (Daily Classic S1), 0.8730 (Yesterday's Low), 0.8735 (Hourly 20 EMA), 0.8740 (Weekly Low) and 0.8743 (Daily Classic PP).
Next support to the downside can be found at 0.8715 (Daily Classic S2), 0.8713 (Daily Low), 0.8707 (Weekly Classic S1), 0.8700 (Daily 20 SMA) and 0.8699 (Daily Classic S3).
Bulls have lost control
Kiwi continued decline on Friday, despite low liquidity environment due to US Independence day. NZD/USD finished Friday on intraday low of 0.8330, though, still higher that the weekly minimum at 0.8317 reached on Thursday. Technically, this dynamics confirms the idea the the pair has topped out at 0.8793 and now is getting ready for a deeper decline. The first line of support is seen at 0.8700. This level served as a strong resistance for the bulls and now it’s the bears’ turn to do a stiff job. Once we are below this level, 0.8660 (June 25 low) will come into play.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8721, and next resistance can be seen at 0.8727 (Daily Classic S1), 0.8730 (Yesterday's Low), 0.8735 (Hourly 20 EMA), 0.8740 (Weekly Low) and 0.8743 (Daily Classic PP).
Next support to the downside can be found at 0.8715 (Daily Classic S2), 0.8713 (Daily Low), 0.8707 (Weekly Classic S1), 0.8700 (Daily 20 SMA) and 0.8699 (Daily Classic S3).