Technical Outlook of Important NZD Pairs: 24.01.2018

NZD/USD

During its nearly seven-week old upward trajectory, the NZDUSD just surpassed 0.7360-70 horizontal-region, which in-turn could open the gates for the pair’s rally towards 0.7400 and then to the 0.7455-60 area. However, in achieving that status, the quote needs to post a daily closing beyond 0.7370 otherwise it can come-back to 0.7330 prior to testing the upward slanting TL support, at 0.7285 now. Should the pair drops beneath the 0.7285 mark, it can quickly test the 0.7240 and the 0.7195 rest-points before availing the 200-day SMA level of 0.7120 as a halt to its south-run. Meanwhile, pair’s successful trading above 0.7460 enables it to challenge the 0.7480, the 0.7525 and the July 2017 high near 0.7560.

EUR/NZD

With the short-term descending trend-channel portraying the EURNZD’s downturn, the pair is likely declining to 1.6660 and the 1.6620 support-levels; though, the 1.6550 and the 1.6500 round-figure might try giving push-ups to the prices, failing to which could highlight the channel-support number of 1.6380. In case if sellers drag the pair below 1.6380 on a daily closing basis, the 200-day SMA level of 1.6300 become important to watch. Alternatively, the 1.6820, comprising channel-resistance, may confine the pair’s immediate advances, breaking which 1.6880, the 50-day SMA level of 1.6980 and the 1.7000 could please the Bulls. Moreover, pair’s sustained trading above 1.7000 enables it to confront the 1.7100–1.7115 zone, with 1.7030 being intermediate halt.

NZD/JPY

Even if an upward slanting trend-channel signals NZDJPY’s strength, pair’s recent U-turn from 81.55-65 horizontal-region could fetch it back to channel-support line of 80.55. Given the pair’s break of 80.55, the 80.00 and the 200-day SMA level of 79.55 can trigger its upswing, if not, then chances of witnessing 79.20 and the 78.50 on the chart can’t be denied. On the upside, the 81.30 may offer nearby resistance to the pair, breaking which 81.55-65 area again comes into play. Should prices rise above 81.65, the 81.90, the 82.30 and the channel-resistance mark of 82.75 can entertain the buyers.

NZD/CAD

Irrespective of the NZDCAD’s break of 0.9110-20 resistance-area, it still struggles with the 200-day SMA level of 0.9140 in order to meet the 0.9180 and the 0.9210 north-side numbers, breaking which resistance-line of the adjacent ascending trend-channel, at 0.9250, might gain traders’ attention. If the quote surpasses 0.9250, it can easily escalate the upward trajectory to 0.9300 and the 0.9330 resistances. Assuming the pair’s inability to conquer 200-day SMA, it can re-test the 0.9110-20 resistance-turned-support zone, which if broken could further weaken it to avail 0.9080 and the 0.9020 as rest-points.  During the pair’s additional downside below 0.9020, the 0.9000 round-figure and the channel-support of 0.8960 can offer strong supports, which if broken may highlight 50-day SMA level of 0.8900 as Bears’ favorite.

Cheers and Safe Trading,
Anil Panchal