Mid Day Market Updates – NZD/USD

NZD/USD is consolidating lower after recent surge. Four hourly resistance is given at 0.7420. Strong support is given at 0.7301 which aligns with the 50EMA, a break of which shall show continued bearish consolidation.

The long term technical pattern is reversing. The FOMC had paved the way for further decline. Long term support can be found at 0.7301.

Breach of 0.7329 minor support argues that a pullback from 0.7420 shall continue further downside. Intraday bias is turned to the downside for 0.7329 first. A break here will extend larger fall for 0.7301 and target the next key. In any case, outlook will remain bearish as long as 0.7420 resistance holds and will confirm short term topping and bring deeper fall back to 0.7301 support and below.

In the bigger picture, fall from medium term top at 0.7329 is still in progress for 0.7301. However, it should be noted that there is no confirmation of trend reversal yet. That is, such fall from current levels and could be a correction.

And the long term fall could resume. Hence, we’d be cautious on strong resistance limited to upside. But after all, break of 0.7329 is needed to indicate medium term downside. Otherwise, outlook will remain bullish in case of pullback.

The pair has broken out once more. With such strong momentum that continues to build, it had only seemed like a matter of time, however the renewed strengthing of the dollar since the FOMC has helped drive the break above 0.7374. This had been the broad projection target from the old resistance, so the target has been achieved. This now means that the pair is trading at its highest, but also on the longer term charts is now testing the top of the resistance which was rejected and looks to break below the support area. As yet there seems to be little reason not to believe that the dollar can continue to push lower, so selling into the intraday remains viable. The daily momentum indicators are all strongly configured The NZDUSD pair settles below 0.7374 level, to keep the negative pressure valid until now, as the price is affected by the negative effect that appears on four hour chart, waiting for more decline in the upcoming sessions.

Our next targets begin at 0.7374 and extend to 0.7301, noting that holding below 0.7374 represents key condition to continue the expectations of the bearish trend.

Expected trading range for today is between 0.7301 support and 0.7374 resistance.

Expected trend for today: Bearish

 
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