Forex Technical Update
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NZD/USD 1H Chart 11:10PM EDT 7/8/2012
The NZD/USD topped off last Thursday (7/5) at 0.8073, and has since been anchored to a declining channel seen in the 1H chart. It has broken below some consolidation support area between 0.7990 and 0.80. This was accompanied with the 1H RSI reading breaking below 40 and also dipping below 30, showing a loss of bullish momentum and nascent bearish momentum.
The market has consolidated just above the 0.7950 handle. If the 1H RSI reading holds below 60, preferably below 50, while price fails to pull back above 0.80, preferably staying below the 200-hour SMA, then short-term bear trend is intact.
Looking at the 4H chart, we see that the RSI is falling below 40, reflecting loss of bullish momentum in this time-frame, which was established early June. Also, we can see that further bearish action exposes a pivot area around 0.7880, as well as a support pivot seen near 0.7840.
For now, the market in the 4H chart is sideways, even with price down to the 0.7840 area. Also note that the 38.2% retracement of June’s rally from 0.7453 to 7/5 high of 0.8073, is 0.7836.
NZD/USD 4H Chart 11:10 PM EDT 7/8/2012
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
