Forex Technical Update
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NZD/USD 4H Chart 5:38PM EDT 7/17/2012
The NZD/USD found resistance around 0.80 during the 7/16 and 7/17 session. Price fell to 0.7928 during Bernanke’s testimony to the US senate. This temporarily broke below a rising wedge pattern, but failed to break the pivot around 0.7925. Then price quickly reverted back to the levels before the risk event.
Now the focus remains on the resistance around 0.80.
If price can hold above 0.80 after Bernanke finishes his 2-day testimony, then the NZD/USD exposes the July high near 0.8070.
The daily shows that above 0.8075, we expose higher pivots up to the 2012 high near 0.8430. However, as this current bull run extends, it should be noted that the longer term dynamic has been sideways, NOT bullish. The moving averages and RSI action through 2011 and 2012 so far have reflected sideways action. This means, within this dyamic, the further away from the 200-Day SMA (which is near 0.80), the more tendency the NZD/USD in returning toward it.
NZD/USD Daily Chart 5:43PM EDT 7/17/2012
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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