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NZD/USD bulls committing within phase of consolidation

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 19, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - NZD/USD is currently trading at 0.6792 with a high of 0.6796 and a low of 0.6783.

    NZD/USD has been consolidated overnight at the start of the week as the price rides the ascending support line above the 200 SMA on the hourly chart with the bullish trend from the 0.63 handle still intact.

    Looking back, the price ran up from the 0.6230 level where the bearish run petered out in the middle of September while the 20 DMA has now crossed up through the 55 DMA drawing a bullish line in the sand.

    Commodities have taken a hit at the start of the week though, post the Chinese "slowdown" data, although with GDP beating expectations, the outlook remains bearish for the commodity bloc, especially for EM's. Chinese GDP for Q3 data arrived as 6.9% Y/Y beating expectations of 6.8%, but comes below the previous of 7% Y/Y and as the lowest level since the start of the financial crisis. The US dollar is also appearing back on the front line and may pose some downside risk it manages to garner any momentum.

    NZD/USD levels

    Technically, the picture remains the same, with the price consolidated within that bullish trend and still below the pivot of 0.6828 today at current spot of 0.6793.

    0.6890 resistance capped the pair ahead of R2 at 0.6938. The price has dropped away below the 50 SMA on the hourly chart with the 20 crossing down placed at 0.6810 on the same time frame. MA's with RSI (14) back below 50. Downside levels below 0.68 come as 0.6740 ahead of 0.6706.
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