7 Apr 2014
NZD/USD attacks 0.8600 resistance
FXStreet (Moscow) - NZD/USD is currently trading at 0.8606, up 0.11% on the quiet Asian session after setting the intraday low at 0.8579.
Kiwi’s bulls scheme a revenge
Kiwi recovered nicely on Friday, but it did not prevent it from having its first negative week in more than a month. On a longer-term scale the movement is just a healthy correction after a head-spinning rise to new multi-year highs. NZD/USD continued to climb higher during quiet Asian hours on Monday, though it is still needs break above 0.8600 to confirm the positive short-term trend. It seems that the head-and-shoulder pattern is taking shape on the daily chart. In this case the intraday inside will be capped by 0.8640/50 area. From the fundamental point of view there is nothing to chew on in Asia as Chinese markets are closed for holiday. European session might bring some excitement, while kiwi movements is likely to be governed by risk sentiments. On the upper side the firm break above 0.8600 will take the pair to a strong technical resistance of 0.8616, and then to 0.8646, where the upside may be capped The downside will be limited by 0.8584.
What price levels and patterns have to be considered?
Current price is 0.8609, with resistance ahead at 0.8615 (Hourly 200 SMA), 0.8616 (Daily High), 0.8627 (Daily Classic R1), 0.8653 (Daily Classic R2) and 0.8673 (Monthly High).
Next support to the downside can be found at 0.8606 (Weekly Classic PP), 0.8605 (Yesterday's High), 0.8592 (Hourly 100 SMA), 0.8584 (Daily Open) and 0.8583 (Hourly 20 EMA).
Looking at price patterns, we can see a Hammer 4-hour candlestick formation.
Kiwi’s bulls scheme a revenge
Kiwi recovered nicely on Friday, but it did not prevent it from having its first negative week in more than a month. On a longer-term scale the movement is just a healthy correction after a head-spinning rise to new multi-year highs. NZD/USD continued to climb higher during quiet Asian hours on Monday, though it is still needs break above 0.8600 to confirm the positive short-term trend. It seems that the head-and-shoulder pattern is taking shape on the daily chart. In this case the intraday inside will be capped by 0.8640/50 area. From the fundamental point of view there is nothing to chew on in Asia as Chinese markets are closed for holiday. European session might bring some excitement, while kiwi movements is likely to be governed by risk sentiments. On the upper side the firm break above 0.8600 will take the pair to a strong technical resistance of 0.8616, and then to 0.8646, where the upside may be capped The downside will be limited by 0.8584.
What price levels and patterns have to be considered?
Current price is 0.8609, with resistance ahead at 0.8615 (Hourly 200 SMA), 0.8616 (Daily High), 0.8627 (Daily Classic R1), 0.8653 (Daily Classic R2) and 0.8673 (Monthly High).
Next support to the downside can be found at 0.8606 (Weekly Classic PP), 0.8605 (Yesterday's High), 0.8592 (Hourly 100 SMA), 0.8584 (Daily Open) and 0.8583 (Hourly 20 EMA).
Looking at price patterns, we can see a Hammer 4-hour candlestick formation.