Feb 25 04:56 GMT


Forex Expos

NZD/USD Pulls Back; Breaks Above Falling Trendline Print E-mail
Daily Forex Technicals | Written by FXTimes | Mar 06 13 14:06 GMT

NZD/USD Pulls Back; Breaks Above Falling Trendline

Bearish swing; Rising trendline break: The NZD/USD has been bearish since 2/15 from the 0.8530 high. Momentum started to be bearish in the 4H chart as the RSI tagged 30, then held under 60 in pull backs. The moving averages started to be in bearish alignment, but the fact that the 200-SMA is relatively flat means that there hasn't been any progression to the bearish trend yet, as it is only a single bearish swing from 0.8530 to 0.8190. Price did break below a key rising trendline that went back to July 2012.

Pull back and falling TL break: After the break, the Kiwi found support at 0.8190 and pulled back above the broken trendline. As we get into the 3/6 US session, it is also trying to break above a falling trendline that came down from the 0.8530 high. The 50% retracement is at 0.8360 and 61.8% retracement is at 0.84. A pull back extending above 0.84 should be a very strong sign that the previous downside break was a false one. This scenario returns the outlook to the bullish side, with at least the 0.8530 high in sight.


About the Author


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 analyses.

Facebook MySpace Twitter Digg Delicious Google Bookmarks 

Analysis Reports

Central Bank Analysis
Economic Data Reviews
Technical Analysis

Forex Brokers © 2017 All rights reserved.