NZD/USD tries to breach monthly S2
The New Zealand Dollar managed to recover some lost positions against the Greenback early on Monday and thus return near its mid-Friday level. The rate made a false breakout of the descending channel; thus, its lower line was adjusted accordingly to include the pair’s latest trough.
Meanwhile, it faces the resistance of the 55-hour SMA slightly below the psychological level of 0.70. The pair should test this area in the upcoming hours; however, it is yet to be seen whether or not it is breached.
In case of a positive outcome, the upside target should be the weekly PP at 0.7039. Conversely, the US Dollar might still re-test the lower channel boundary near 0.6920/40. This area, however, is likely to hold and send the pair for a slight appreciation.
Meanwhile, it faces the resistance of the 55-hour SMA slightly below the psychological level of 0.70. The pair should test this area in the upcoming hours; however, it is yet to be seen whether or not it is breached.
In case of a positive outcome, the upside target should be the weekly PP at 0.7039. Conversely, the US Dollar might still re-test the lower channel boundary near 0.6920/40. This area, however, is likely to hold and send the pair for a slight appreciation.
Comment:
NZD/USD was characterised by a lack of momentum during the past trading session, as the Kiwi remained near the bottom boundary of the descending channel. This small volatility suggests that the rate might soon surge either direction.
US Core Durable Goods released at 1230GMT caused some downward pressure in the market, thus sending the Kiwi lower.
Given that a breakout of the senior channel mid-yesterday has not yet followed by a rebound, this move could be realised in the upcoming trading session.
The upside is guarded by the 55-hour SMA circa 0.6940, while the bottom limit located in the 0.6820/40 area.
NZD/USD was characterised by a lack of momentum during the past trading session, as the Kiwi remained near the bottom boundary of the descending channel. This small volatility suggests that the rate might soon surge either direction.
US Core Durable Goods released at 1230GMT caused some downward pressure in the market, thus sending the Kiwi lower.
Given that a breakout of the senior channel mid-yesterday has not yet followed by a rebound, this move could be realised in the upcoming trading session.
The upside is guarded by the 55-hour SMA circa 0.6940, while the bottom limit located in the 0.6820/40 area.
Comment:
Even though the New Zealand Dollar has diminished the steepness of its price decrease, the given currency has nevertheless remained under bearish pressure. The pair continues to trade along the lower boundary of the junior channel in a diminishing range between the 55-hour SMA and the weekly S1.
This range should be breached in the following trading session. Technical indicators suggest that the former might provide a stronger barrier, thus sending the Kiwi for a further decline.
Given that the US is to release its Advance GDP for the third quarter of 2017 mid-Friday, traders might be reluctant to introduce major changes to the overall price level.
Thus, the Kiwi could fluctuate between the 100-hour SMA and the monthly S3 in the 0.6925/0.6800 area.
Even though the New Zealand Dollar has diminished the steepness of its price decrease, the given currency has nevertheless remained under bearish pressure. The pair continues to trade along the lower boundary of the junior channel in a diminishing range between the 55-hour SMA and the weekly S1.
This range should be breached in the following trading session. Technical indicators suggest that the former might provide a stronger barrier, thus sending the Kiwi for a further decline.
Given that the US is to release its Advance GDP for the third quarter of 2017 mid-Friday, traders might be reluctant to introduce major changes to the overall price level.
Thus, the Kiwi could fluctuate between the 100-hour SMA and the monthly S3 in the 0.6925/0.6800 area.
Comment:
NZD/USD was stranded between the 55-hour SMA and the weekly S1 on Thursday. The latter failed to provide support for the rate and thus was breached later in the day. The Kiwi, however, did not edge considerably lower, as it remained slightly below this mark.
As apparent on the chart, traders were reluctant to put pressure on the pair since mid-yesterday, thus keeping it stable even after data on the US Advance GDP were released at 1230GMT.
Technical indicators are still in favour of a fall, thus regarding the weekly S2 circa 0.6785 as the ultimate lower barrier.
Conversely, upside is guarded by the 100-hour SMA and the lower boundary of the channel which was breached on Monday near 0.6920.
NZD/USD was stranded between the 55-hour SMA and the weekly S1 on Thursday. The latter failed to provide support for the rate and thus was breached later in the day. The Kiwi, however, did not edge considerably lower, as it remained slightly below this mark.
As apparent on the chart, traders were reluctant to put pressure on the pair since mid-yesterday, thus keeping it stable even after data on the US Advance GDP were released at 1230GMT.
Technical indicators are still in favour of a fall, thus regarding the weekly S2 circa 0.6785 as the ultimate lower barrier.
Conversely, upside is guarded by the 100-hour SMA and the lower boundary of the channel which was breached on Monday near 0.6920.
Comment:
Even though the Kiwi has maintained its general movement southwards, downward pressure seems to have allayed, thus paving a way for a minor appreciation on Friday.
This slight recovery was nevertheless stopped by the 55– and 100-hour SMAs. Technical indicators flash mixed signals; thus, two possible scenarios for the upcoming 24 hours should be examined.
The New Zealand Dollar might continue edging lower down to the monthly S3 or the weekly S1 at 0.6793. The bottom boundary of the channel is unlikely to be breached in this scenario.
Conversely, upside risks might prevail in the market and consequently push the rate pass the 100-hour SMA and towards the combined resistance of the weekly PP and the bottom boundary of the channel breached on October 24 circa 0.69.
Even though the Kiwi has maintained its general movement southwards, downward pressure seems to have allayed, thus paving a way for a minor appreciation on Friday.
This slight recovery was nevertheless stopped by the 55– and 100-hour SMAs. Technical indicators flash mixed signals; thus, two possible scenarios for the upcoming 24 hours should be examined.
The New Zealand Dollar might continue edging lower down to the monthly S3 or the weekly S1 at 0.6793. The bottom boundary of the channel is unlikely to be breached in this scenario.
Conversely, upside risks might prevail in the market and consequently push the rate pass the 100-hour SMA and towards the combined resistance of the weekly PP and the bottom boundary of the channel breached on October 24 circa 0.69.
Comment:
The Kiwi was set for a minor appreciation against the US Dollar on Monday; however, sluggish fundamentals increased downside pressures on the Antipodean currency which fell 25 pips within the first hour today.
Subsequently, the pair failed to breach the combined support of the 55– and 100-hour SMAs circa 0.6860. Given slightly bearish technical indicators, the Kiwi might realise its downside potential and test the monthly S3 and the weekly S1 at 0.6793. Similarly to yesterday, the bottom channel boundary is unlikely to be breached.
Meanwhile, the rate remains fluctuating around the 0.6860 mark for the third consecutive session. This lack of direction, however, is likely to change this week, most probably to the upside.
The Kiwi was set for a minor appreciation against the US Dollar on Monday; however, sluggish fundamentals increased downside pressures on the Antipodean currency which fell 25 pips within the first hour today.
Subsequently, the pair failed to breach the combined support of the 55– and 100-hour SMAs circa 0.6860. Given slightly bearish technical indicators, the Kiwi might realise its downside potential and test the monthly S3 and the weekly S1 at 0.6793. Similarly to yesterday, the bottom channel boundary is unlikely to be breached.
Meanwhile, the rate remains fluctuating around the 0.6860 mark for the third consecutive session. This lack of direction, however, is likely to change this week, most probably to the upside.
The New Zealand fell to its five-month low of 0.6912 mid-Tuesday when investors started to react negatively to uncertainty that could be caused by the Labour coalition’s policies.
As a result, the lower boundary of the descending channel was slightly breached and the Kiwi tested the junior channel. Nevertheless, the rate is likely to recover its massive decrease in value dominating the market since last Thursday.
The closest resistance is formed by the 55-hour SMA and the monthly S2 near the 0.6970 mark. This level might not hold for long, thus the weekly PP and the 100-hour SMA circa 0.7030 could be regarded as a more probable upside barrier.