8 Jul 2014
NZD/USD bulls hope for another chance at 0.8770
FXStreet (Moscow) - NZD/USD retreated from the Asian high of 0.8772 and settled at 0.8765, though the bullish sentiments are still dominant
Bulls are trying to claw back ground
Kiwi bears stopped short marginally below the previous week minimum set at 0.8717, while bulls took advantage of the situation and drove the pair to 0.8747 by the end of Monday. The upside movement seen early in Asia brought NZD/USD to 0.8772, though the resistance of 0.8770 held and the bulls had to retreat. The dynamics is not fundamentally induced as weak business confidence data can hardly be used as a pretext for a bullish run. Anyway, NZD/USD needs to break above 0.8793 (the high of the previous week) and 0.8800 (bespoke resistance) to prove its bullish ways.
As lon as the pair trades below those levels, consolidation within a broad range will be the order of the day.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8765, and next resistance can be seen at 0.8769 (Yesterday's High), 0.8774 (Daily High), 0.8774 (Weekly High), 0.8780 (Monthly High) and 0.8780 (Annual High).
Support below can be found at 0.8759 (Daily Open), 0.8756 (Hourly 200 SMA), 0.8753 (Hourly 20 EMA), 0.8753 (Hourly 100 SMA) and 0.8750 (Weekly Classic PP).
Looking to candlestick patterns, we can see a Piercing Line formation on the 4-hour chart .
Bulls are trying to claw back ground
Kiwi bears stopped short marginally below the previous week minimum set at 0.8717, while bulls took advantage of the situation and drove the pair to 0.8747 by the end of Monday. The upside movement seen early in Asia brought NZD/USD to 0.8772, though the resistance of 0.8770 held and the bulls had to retreat. The dynamics is not fundamentally induced as weak business confidence data can hardly be used as a pretext for a bullish run. Anyway, NZD/USD needs to break above 0.8793 (the high of the previous week) and 0.8800 (bespoke resistance) to prove its bullish ways.
As lon as the pair trades below those levels, consolidation within a broad range will be the order of the day.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8765, and next resistance can be seen at 0.8769 (Yesterday's High), 0.8774 (Daily High), 0.8774 (Weekly High), 0.8780 (Monthly High) and 0.8780 (Annual High).
Support below can be found at 0.8759 (Daily Open), 0.8756 (Hourly 200 SMA), 0.8753 (Hourly 20 EMA), 0.8753 (Hourly 100 SMA) and 0.8750 (Weekly Classic PP).
Looking to candlestick patterns, we can see a Piercing Line formation on the 4-hour chart .