NZD/USD Rally Stalls At Key Resistance
FOREX.com | Apr 14, 2018 20:06
The NZD/USD’s strong showing of late has come to an end – at least for the time being. The unit is in the process of creating a bearish engulfing candle on its daily chart after it ran into offers around its bearish trend line, just below the 0.7400 handle. If support at 0.7350 breaks down now, then we may see the kiwi drop to the next potential line of defence at 0.7320/5, which was formerly resistance. The next level of support below here is at 0.7280/5, which marks the head of the doji daily candle and the 50-day moving average. The more significant support is at 0.7180/0.7200 area, where price has repeatedly found support from in recent times. In addition, the 200-day moving average also comes into play there.
But overall the trend is bullish. So, if and when the NZD/USD goes back higher and eventually breaks the bearish trend line and resistance at around 0.7400 then the next stop for the kiwi could be either at the 0.7460 resistance level or the 2017 high of 0.7555/60.
Meanwhile in terms of fundamentals, there are a couple of key economic pointers from both the US and New Zealand to consider next week. Monday will see the release of US retail sales while New Zealand CPI will be published late in the day on Wednesday or early morning NZ time. These figures have the potential to move the markets, especially if they deviate from expectations meaningfully.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Get The App
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.