29 Oct 2013
NZD/USD: selling on strength pays off, key 0.8230 not far
FXstreet.com (Barcelona) - NZD/USD continues to trade under a heavy tone, capped by the 20ema on the H4 chart, suggesting a context still suitable to sell on strength should price action agree.
NZD/USD selling pressure to slow down ahead of 0.82/0.8230, RBNZ
While the rotation off 0.85 highs has developed in a 'fast and furious' line, with shallow pullbacks in between, if sellers are really to inflict some major technical damage to the daily uptrend structure, a break below 0.82 is still required to confirm a trend change.
Until then, and as Kiwi sellers get closer to key support at 0.82 up to 0.8230 area, the price action is likely to slow down. The RBNZ monetary policy meeting on Thursday will be another powerful reason for price to stall once/if mentioned support tested.
In view of Bank of New Zealand: "We expect the OCR review by the RBNZ to affirm the tightening tenor of the Sept meeting."
On the topside, attempts to recover technical layers have so far failed, with the latest peak through 0.8330 being sold off heavily (20-H4 EMA crossing), suggesting a market that remains very much comfortable selling into strength. As the technicals stand, a break and hold above 0.8360 is required to ease the pressure off the Kiwi.
NZD/USD selling pressure to slow down ahead of 0.82/0.8230, RBNZ
While the rotation off 0.85 highs has developed in a 'fast and furious' line, with shallow pullbacks in between, if sellers are really to inflict some major technical damage to the daily uptrend structure, a break below 0.82 is still required to confirm a trend change.
Until then, and as Kiwi sellers get closer to key support at 0.82 up to 0.8230 area, the price action is likely to slow down. The RBNZ monetary policy meeting on Thursday will be another powerful reason for price to stall once/if mentioned support tested.
In view of Bank of New Zealand: "We expect the OCR review by the RBNZ to affirm the tightening tenor of the Sept meeting."
On the topside, attempts to recover technical layers have so far failed, with the latest peak through 0.8330 being sold off heavily (20-H4 EMA crossing), suggesting a market that remains very much comfortable selling into strength. As the technicals stand, a break and hold above 0.8360 is required to ease the pressure off the Kiwi.