Forex Technical Update
NZD/USD Weekly Chart 9/24/2012
Following up with the previous update, NZD/USD followed a 3-wave bearish correction with a strong bullish continuation swing that has broken a key declining trendline going back to 2011, as seen in the daily chart. This exposes the 0.8470 resistance pivot and 2012-high. However, before we get there, the market is backing off another resistance around 0.8318, albeit cracking it first.
Let’s turn to the daily chart for a closer look.
The daily chart shows that the 0.83-0.8318 area as resistance for a consolidation period from March through April, finally breaking lower early May. There seems to be resistance there again as the market failed to clear this area in the past week, and starts this week falling to a new low since the foray at the 0.8318 pivot. If we look at the previous consolidation area as an analogy, then we can anticipate some support around the 0.8050-0.8075 area. This includes old consolidation support as well as other resistance/support pivots. A more aggressively outlook is down toward the 0.80 handle or a test of the projected rising trendline.
NZD/USD Day Chart 3:45 PM EDT 9/24/2012
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.
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