NZDUSD Technical Analysis | Forexlive
On the daily chart below for
NZDUSD, we can see that as the price spiked to the 0.6389 resistance after the RBNZ hiked by more
than expected, the sellers entered the market aggressively as the US data
started to show material weakness and the market began to get recessionary
vibes.
The price then fell for hundreds
of pips, eventually going back into the previous range between the 0.6191
support and 0.6270 resistance. The price is now bouncing from the support as
the US
CPI yesterday
didn’t offer much in terms of clarity with headline CPI falling more than
expected and Core CPI coming in more or less within expectations.
Today the market will be focused
on the US Jobless Claims as they recently started to show
weakness, and if it turns into a trend, the market may start to fear the
recession.
On the 4 hour chart below, we can
see that the big channel the market was trading in has been broken. If we look
at it from a big picture perspective, it can be interpreted as a bearish
flag, which is a continuation pattern.
This may suggest that we could
see much more weakness in the pair going forward with a break below the 0.6084
low looking good. The red long period moving
average is acting as resistance at the moment and if we get a higher than
expected number in Jobless Claims, we may see the price falling again breaking
below the 0.6191 support.
On the 1 hour chart below, we can
see that the market is trading within a mini range. The setup looks pretty
clear: break above the resistance and the buyers will be in control, on the
other hand, break below the support and the sellers will push the price to
lower lows. This consolidation at the support may go on until the Jobless
Claims report.