24 Jul 2014
NZD/USD: 0.8600 support is under bearish attack
FXStreet (Moscow) - NZD/USD bears has no intention to rest on laurels as after a short pause around 0.8620 the pair resumed the downside and set a new low at 0.8592.
RBNZ killed the bird
It’s one of those days for kiwi. The RBNZ was unexpectedly dovish and, to crown it all, nearly promised to intervent to weaken local currency anytime.
As soon as NZD/USD breaks below the strong support area of 0.8610/00, its technical perspective will become really sour as the downside may be extended to 0.8550/40 and even lower to 0.8500 within coming days. Though lots of offers cluster around that area, might halt the downside for a while and even trigger some profit taking on the intraday basis. The daily close below the said support area is likely to be a clear bearish signal.
What price levels and patterns have to be considered?
Current price is 0.8597, with resistance ahead at 0.8616 (Weekly Classic S1), 0.8618 (Daily Classic S3), 0.8626 (Daily 100 SMA), 0.8637 (Daily Classic S2) and 0.8646 (Hourly 20 EMA).
Next support to the downside can be found at 0.8592 (Daily Low), 0.8545 (Weekly Classic S2), 0.8451 (Daily 200 SMA), 0.8441 (Weekly Classic S3) and 0.8082 (YTD Low).
Regarding candlestick formations, we can see Hammer formation on the 4-hour .
RBNZ killed the bird
It’s one of those days for kiwi. The RBNZ was unexpectedly dovish and, to crown it all, nearly promised to intervent to weaken local currency anytime.
As soon as NZD/USD breaks below the strong support area of 0.8610/00, its technical perspective will become really sour as the downside may be extended to 0.8550/40 and even lower to 0.8500 within coming days. Though lots of offers cluster around that area, might halt the downside for a while and even trigger some profit taking on the intraday basis. The daily close below the said support area is likely to be a clear bearish signal.
What price levels and patterns have to be considered?
Current price is 0.8597, with resistance ahead at 0.8616 (Weekly Classic S1), 0.8618 (Daily Classic S3), 0.8626 (Daily 100 SMA), 0.8637 (Daily Classic S2) and 0.8646 (Hourly 20 EMA).
Next support to the downside can be found at 0.8592 (Daily Low), 0.8545 (Weekly Classic S2), 0.8451 (Daily 200 SMA), 0.8441 (Weekly Classic S3) and 0.8082 (YTD Low).
Regarding candlestick formations, we can see Hammer formation on the 4-hour .