Forex Technical Update
NZD/USD Daily Chart 9:00AM EDT 10/17/2012
Still Bullish: The NZD/USD has been in a consolidation/correction falling from the 0.8354 high in September down to 0.8106 in October. In the daily chart , you see that this still held above the 200-day SMA and a rising channel support. The daily RSI showed weak bullish momentum when it failed to tag 70. But it got close, and it was not able to break below 40, so the bias is indeed bullish.
Consolidation: The 4H chart below shows choppy action in October as it continued to consolidate downwards. The momentum is not clear, but it is definitely not bullish yet. In fact, if it does not push above 60, the momentum is still in consolidation mode. As far as price, the latest rally appears to have more strength than other bullish attempts during this decline from late September.
Breakout: A break above 0.8240 should clear the declining trendline, as well as push the RSI above 60 toward 70. With such choppy unclear price action in October, this scenario (break above 0.8240), would suggest return to the bullish mode, with focus on the 0.8354 high.
NZD/USD 4H Chart 10:25PM EDT 10/11/2012
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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