16 Jun 2014
NZD/USD bulls set their eyes on 0.8700 resistance
FXStreet (Moscow) - NZD/USD started the week on a positive note as the pair opened at 0.8662 and climbed up to 0.8683
Out from the nest and up into the sky
NZD/USD touched the bespoke resistance of 0.8700, but the nut was too hard to crack and the pair retreated to 0.8647 by the end of Friday. It seems that falling dairy prices and rising Kiwi did not scare the central bankers as they raised the rate and promised to do so again. Considering this rather hawks RBNZ stance and global demand fro carry, Friday’s sell-off may be regarded as a healthy correction against the steep rise from the lows of 0.8400. Technically, the downside may be stopped by 0.8647 support, though once it is broken, the bears will get more enthusiastic and may push kiwi to the key level of 0.8600. On the upside the bespoke resistance lies at 0.8700, which is unlikely to be broken until Wednesday, when New Zealand GDP numbers are published.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8681, and next resistance can be seen at 0.8684 (Daily High), 0.8688 (Monthly High), 0.8688 (Weekly High), 0.8694 (Yesterday's High) and 0.8697 (Daily Classic R1).
Support below can be found at 0.8670 (Daily Classic PP), 0.8668 (Daily Open), 0.8665 (Hourly 20 EMA), 0.8659 (Daily Low) and 0.8647 (Daily Classic S1).
Looking at price patterns, we can see a Hammer 1-hour candlestick formation, .
Out from the nest and up into the sky
NZD/USD touched the bespoke resistance of 0.8700, but the nut was too hard to crack and the pair retreated to 0.8647 by the end of Friday. It seems that falling dairy prices and rising Kiwi did not scare the central bankers as they raised the rate and promised to do so again. Considering this rather hawks RBNZ stance and global demand fro carry, Friday’s sell-off may be regarded as a healthy correction against the steep rise from the lows of 0.8400. Technically, the downside may be stopped by 0.8647 support, though once it is broken, the bears will get more enthusiastic and may push kiwi to the key level of 0.8600. On the upside the bespoke resistance lies at 0.8700, which is unlikely to be broken until Wednesday, when New Zealand GDP numbers are published.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8681, and next resistance can be seen at 0.8684 (Daily High), 0.8688 (Monthly High), 0.8688 (Weekly High), 0.8694 (Yesterday's High) and 0.8697 (Daily Classic R1).
Support below can be found at 0.8670 (Daily Classic PP), 0.8668 (Daily Open), 0.8665 (Hourly 20 EMA), 0.8659 (Daily Low) and 0.8647 (Daily Classic S1).
Looking at price patterns, we can see a Hammer 1-hour candlestick formation, .