Previous: NZD/USD Signals Bullish Continuation After Throwback (1/9)
NZD/USD
The NZD/USD continues to be bullish as the market rallies above a sideways consolidation with resistance at 0.7963. If on a throwback in the Asian session stays above 0.7950, the market would be confirming the upside break for bullish continuation at least in the short-term. The order of moving averages and the RSI’s ability to stay even above 50 certainly confirms so.
The daily chart shows that the market has already completed an ABC correction with C=A wave equality at 0.7965. The 200 Day simple moving average has not been respected as support or resistance as the market has been in a long-term sideways mode since beginning of 2007, though it picked up some bullish bias since May 2010.
Instead, the next key resistance might be the 50% retracement level at about 0.8105. Above that, we have a major resistance cluster at 0.8279, which is 61.8% retracement, and the level where C is 161.8% expansion of A. A push above this level would be a significant bullish signal back toward the 0.8842 high. For now, monitor for resistance first at 0.81.
Fan Yang CMT is the Chief Technical Strategist FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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