NZD/USD confirms channel down pattern
The charted channel, which was drawn on Tuesday, on the NZD/USD hourly chart was once more confirmed when the lower trend line managed to force a rebound of the pair.
However, the decline down to the trend line did not occur, as previously expected, as the rate still made numerous attempts to break above the previously active ascending pattern’s support line’s resistance. Only after the 55-hour SMA approached from the north the rate began a decline, which managed to pass the support of the 200-hour SMA.
In regards to the near future, any scenario is possible, as the only near by technical level is the support line of the rather small scale channel down pattern.
However, the decline down to the trend line did not occur, as previously expected, as the rate still made numerous attempts to break above the previously active ascending pattern’s support line’s resistance. Only after the 55-hour SMA approached from the north the rate began a decline, which managed to pass the support of the 200-hour SMA.
In regards to the near future, any scenario is possible, as the only near by technical level is the support line of the rather small scale channel down pattern.
Comment:
The picture of the broken pattern on the NZD/USD hourly chart for the traders, who shorted the pair already on Monday is a picture of joy. The reason for that is that for the whole week Dukascopy analysts were monitoring the descending pattern, that lead a break out to the downside for the Kiwi against the Buck.
During the last 24 hours the pair plummeted through the combined support of the weekly S1 and the lower trend line of the descending channel. As a result of the decline, the pair managed to fall almost 100 base points.
However, the decline seemed to have ended on Friday, as the weekly S2 had stopped the fall of the Kiwi.
During the last 24 hours the pair plummeted through the combined support of the weekly S1 and the lower trend line of the descending channel. As a result of the decline, the pair managed to fall almost 100 base points.
However, the decline seemed to have ended on Friday, as the weekly S2 had stopped the fall of the Kiwi.
Regarding the near future, as we already stated on Monday, the pair was aimed to reach the support of the weekly S1 near the 0.7290 mark.
However, prior to reaching the target, the currency pair has managed to find support in the lower trend line of the channel. The support of the channel has been strong enough to propel the rate up to the resistance cluster near the 0.7340 mark twice.
Although, the resistance held its ground.