Forex Technical Update
NZD/USD 4H Chart 9:08AM EDT 11/5/2012
Triangle Breakout: The NZD/USD broke above a triangle last week (11/1), and has since stalled under 0.8290. A throwback has formed, with price action back toward the price range of the broken triangle as seen in the 4H chart.
The RSI kissed 70, showing build up of bullish momentum Holding above 40 should help confirm persistence of the bullish momentum. As far as price goes, the apex of the previous triangle is around 0.8220. A hold above that maintains the bullish outlook from the breakout, which has the 0.8354 September high in sight.
A break below the 0.82 handle introduces the bearish outlook. Instead of a bottom, NZD/USD would appear to have completed an ABC correction, with focus back to the downside, which is limited to 0.81 for now. A break below 0.81 will also break a rising trendline, introducing a bearish outlook with 0.7810-0.7840 support area in sight.
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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