NZD/USD change of patterns
Initially Thursday’s forecast for the Kiwi against the US Dollar continued on, as forecast. However, something strange occurred after the initial move was complete.
As Dukascopy analysts expected a rebound against the lower trend line of the previously drawn channel up pattern, the support of the pattern was broken. Instead the surge occurred slightly lower. That gave an opportunity to adjust the channel up.
In addition, that caused suspicion and a look at the larger scale was done. Due to that another larger channel up pattern was discovered.
Combining these adjustments an ascending triangle was discovered, which should be broken to the downside at the latest next week.
As Dukascopy analysts expected a rebound against the lower trend line of the previously drawn channel up pattern, the support of the pattern was broken. Instead the surge occurred slightly lower. That gave an opportunity to adjust the channel up.
In addition, that caused suspicion and a look at the larger scale was done. Due to that another larger channel up pattern was discovered.
Combining these adjustments an ascending triangle was discovered, which should be broken to the downside at the latest next week.
Comment:
On Tuesday it was possible to finally exactly pinpoint the borders of the expected new medium term descending pattern on the charts of the NZD/USD currency pair.
The main move was occurring as this text of analysis was initially written by our analyst. The reason was the passing of the 100-hour SMA, which had held its ground throughout the previous 24-hour period.
Due to that reason it could be expected that the currency exchange rate will decline down to the 0.6964. level, where the 23.60% Fibonacci retracement level should stop it. However, that level has not previously shown relevant force.
The main move was occurring as this text of analysis was initially written by our analyst. The reason was the passing of the 100-hour SMA, which had held its ground throughout the previous 24-hour period.
Due to that reason it could be expected that the currency exchange rate will decline down to the 0.6964. level, where the 23.60% Fibonacci retracement level should stop it. However, that level has not previously shown relevant force.
Comment:
After testing the 0.7020 mark mid-Tuesday, bears took the upper hand and pushed the New Zealand Dollar down to a support cluster formed by the weekly PP and the 200-hour SMA near 0.6950.
The pair has since managed to recover some of its daily loses. However, given that it faces a significant resistance of the 55– and 100-hour SMAs circa 0.70, this upward movement should not be long. From the downside, the Kiwi is likewise supported by the monthly R1 at 0.6948.
Both barriers are likely to confine the rate in a range for the following 24 hours. However, this situation might change at 2145GMT when New Zealand is to release its GDP for the third quarter of 2017.
After testing the 0.7020 mark mid-Tuesday, bears took the upper hand and pushed the New Zealand Dollar down to a support cluster formed by the weekly PP and the 200-hour SMA near 0.6950.
The pair has since managed to recover some of its daily loses. However, given that it faces a significant resistance of the 55– and 100-hour SMAs circa 0.70, this upward movement should not be long. From the downside, the Kiwi is likewise supported by the monthly R1 at 0.6948.
Both barriers are likely to confine the rate in a range for the following 24 hours. However, this situation might change at 2145GMT when New Zealand is to release its GDP for the third quarter of 2017.
Comment:
There are more than few developments on the NZD/USD currency pair. First of all the pair has broken a notable resistance level. The resistance of the upper trend line of the previously drawn junior channel down pattern was passed.
However, main attention should be attracted to the fact that the pair is approaching an important support level. The medium scale’s ascending channel’s lower trend line is located at the 0.70 mark. In addition it is supported by the 100 and 200-hour simple moving averages.
If that support gets passed, the next target will be the 0.6960 mark, where a Fibonacci retracement level is located at.
However, main attention should be attracted to the fact that the pair is approaching an important support level. The medium scale’s ascending channel’s lower trend line is located at the 0.70 mark. In addition it is supported by the 100 and 200-hour simple moving averages.
If that support gets passed, the next target will be the 0.6960 mark, where a Fibonacci retracement level is located at.
Moreover, the pair has found support below the 0.70 mark and attempted to regain ground. However, the currency exchange rate did not manage to reach the dominant resistance line before it was stopped by the previously active junior patterns support line, which had begun to act as a resistance.
In regards to the future, it can be expected that the rate will decline, if it passes the 55-hour SMA’s support. On the other hand a reconfirmation of the dominant resistance might once more take place.