Technical Update Of Important NZD Pairs: 05.04.2017

NZD/USD

With a two-month old descending trend-line successfully restricting NZDUSD’s upside, the pair seems all set to re-test 0.6945-40 horizontal-line. However, there prevails lack of space towards south during the quote’s extended decline below 0.6940 as 0.6910 and an upward slanting trend-line, connecting December & March lows, at 0.6895 now, might limit its additional drops. If at all prices keep maintaining bearish bias and clear 0.6895 on a daily closing basis, chances of its plunge to 0.6860 and the 0.6830 can’t be denied. On the upside, aforementioned TL mark of 0.7010 can offer immediate resistance to the pair, breaking which 0.7040 & 0.7070 are likely following figures to appear on the chart. Moreover, pair’s further advances beyond 0.7070 might find it hard to clear 0.7075-85 horizontal-region, comprising 50% Fibonacci Retracement Level and 100-day SMA.

NZD/JPY

Even if support-line of a ten-week old descending trend-channel and 61.8% Fibonacci Retracement level triggered NZDJPY’s bounce, the pair can’t be termed strong unless clearing 200-day SMA figure of 77.45 on a daily closing basis. With this, importance of channel support-line, at 76.70 now, continue to remain high for short-term traders but 61.8% Fibo level of 76.90 may become immediate rest to watch. Should the quote negates channel formation by declining below 76.70, its fresh south-run to 76.00 and then to 75.60 becomes widely expected. Meanwhile, pair’s closing above 77.45 enables it to aim for 77.80 and the 78.30 but channel resistance-line of 79.00 could limit its additional recovery. During the pair’s further up-moves beyond 79.00, it seems wise to target 79.60 and the 80.00 psychological magnet as levels.

GBP/NZD

Following its reversal from 1.7770, the GBPNZD again aims to confront 1.7940-50 horizontal-region with 1.7920 being adjacent resistance. However, pair’s further up-moves beyond 1.7950 might find it difficult to surpass 1.8000 – 1.8010 area comprising three-month old ascending trend-line. If prices rally above 1.8010, also clear 1.8030-35 multiple resistance-zone, Bulls can target 1.8200 round figure resistance. Alternatively, the 1.7770, quickly followed by 1.7750 trend-line, may limit the pair’s near-term downside, breaking which 200-day SMA level of 1.7700 grabs market attention. Given the pair’s profit-booking drags it below 1.7700, the 1.7670, 1.7560 and the 1.7480 are likely consecutive supports that traders should watch.

AUD/NZD

While 1.0800 – 1.0805 horizontal-line triggered AUDNZD’s latest pullback recovery, an upward slanting support-turned-resistance-line, at 1.0870, may activate the pair’s fresh drag and confirm Break-Pullback-Continuation (BPC) formation, which in-turn indicates its further downside to 1.0825 and then to 1.0805 – 1.0800 before declining further. During the pair’s additional south-run below 1.0800, the 1.0780, 1.0760 and the 1.0745 are likely following supports to appear for observation. However, in case of the pair’s sustained trading above 1.0870, it becomes capable to aim for 1.0900 and the 1.0920 before the descending trend-line resistance figure of 1.0945 grabs buyers’ attention. Given the pair surpasses 1.0945, the 1.0980 and the 1.1000 psychological-mark should be targeted when being long.

Cheers and Safe Trading,
Anil Panchal