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NZD/USD: consolidating after strong bull trend

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - NZD/USD is currently trading at 0.6617 and has been on the bid testing territory out through the 20 SMA on the hourly chart.

    NZD/USD has been supported in early Asia and continues to be so as we progress through the Tokyo opening hour at time of writing. We rallied from the lows of 0.6603 the low to current high of 0.6629 in a mixed risk environment awaiting China to return today to possibly shake things up again in due course.

    NZD/USD has been supported in a better risk environment while commodities have also been in vogue, along with specific positive news for the bird in the Fonterra prices of late, supporting the outlook for the New Zealand recovery. However, a good amount has already been covered from the recent lows of 0.6480 in the longer term bull trend supported on dips by the 50 SMA on the hourly sticks that commenced at the consolidative area of the depths of the 0.63 handle.

    NZD/USD neutral/bearish

    Technically, NZD/USD pulled back for the highs overnight in overbought territory when hourly RSI (14) was at 76.88 having gained the ground discussed above from 0.6480. RSI has dropped back to 54 on the same time frames and offers a neutral to bearish short-term outlook. Key supports are a cent lower still with the pivot at 0.6526 as first line of defence of the congested 20/50/ MA's at 0.6480.
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