Previous: NZD/USD Bouncing off Trendline, Confirming Double Bottom (6/8)
NZD/USD 4H chart 8:00PM EDT 6/14
The NZD/USD has continued to be bullish in June, after a slide since April and through May. A double bottom was put in at the end of May and confirmed during the first week in June, so far forming a rising wedge seen the 4H chart. It can be noted that there is a bearish divergence forming with the RSI in the 4H chart signaling a slowdown of the rally.
NZD/USD 1H chart 8:07PM EDT 6/14
The 1H chart also shows the market maintaining a bullish stance. This bullish stance was tested after the close of the 6/13 global session, at the beginning of the Asian session, when the RBNZ left the official cash rate at 2.50% as expected. After the risk event, the NZD/USD was able to hold above a rising trendline, creating another higher support pivot at 0.7717.
The next near-term key level to the upside is the 0.7775 pivot, then the 0.78 handle which has kept the rally in check. If the market fails to push above 0.7775 and falls back below the 0.7717 support pivot, it opens up the next one at 0.7667, which is coincident with the 200-hour simple moving average.
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Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for 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.
