30 Oct 2013
NZD/USD dangerously close to 0.8240 immediate support
FXstreet.com (Chicago) - NZD/USD extends bearish channel getting too close to immediate support at 0.8240 ahead of the US Fed interest rate decision.
According to Jim Langlands, founder of FXcharts, “The Kiwi continues to trade in heavy fashion, today dragged lower by the Aud. However it currently sits above the important Fibo support at 0.8230 (38.2% of 0.7718/0.8543), having seen a low of 0.8233. Below this, look for further declines towards the 200 DMA at 0.8181.” adding “the RBNZ will release its I/R decision tomorrow, 2 hours after the Fed so will be pretty hectic. Until then I think sitting on hands is the best plan, looking for a mild squeeze higher in order to build onto a short position.”
NZD/USD Technical Levels
Price action reveals the strengthening of the dollar against the kiwi that fails to resist bearish pressure. Extending the bearish channel since last October 22nd highs, the pair precipitates to grounds flirting with support at 0.8240 (September 17th highs) that if broken will be followed by 0.82 (September 18th lows) and 0.8164 (September 13th highs). On the upside, resistances are aligned at 0.8270 (October 8th lows), 0.8313 (September 27th highs) followed by 0.8355 (October 10th highs). According to the FXstreet.com trend index on one-hour timeframe analysis, the pair is slightly bearish trading below the EMA20.
According to Jim Langlands, founder of FXcharts, “The Kiwi continues to trade in heavy fashion, today dragged lower by the Aud. However it currently sits above the important Fibo support at 0.8230 (38.2% of 0.7718/0.8543), having seen a low of 0.8233. Below this, look for further declines towards the 200 DMA at 0.8181.” adding “the RBNZ will release its I/R decision tomorrow, 2 hours after the Fed so will be pretty hectic. Until then I think sitting on hands is the best plan, looking for a mild squeeze higher in order to build onto a short position.”
NZD/USD Technical Levels
Price action reveals the strengthening of the dollar against the kiwi that fails to resist bearish pressure. Extending the bearish channel since last October 22nd highs, the pair precipitates to grounds flirting with support at 0.8240 (September 17th highs) that if broken will be followed by 0.82 (September 18th lows) and 0.8164 (September 13th highs). On the upside, resistances are aligned at 0.8270 (October 8th lows), 0.8313 (September 27th highs) followed by 0.8355 (October 10th highs). According to the FXstreet.com trend index on one-hour timeframe analysis, the pair is slightly bearish trading below the EMA20.