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Technical Analysis: NZDUSD Forms Channel at 0.7450 - 0.7250

Posted by Chris Advincula on Dec 14, 2016 7:43:50 AM


(Dec 14 Wednesday) The New Zealand dollar shows 3 declining tops on the daily chart from the peak at 0.7485 (Sept 7), the second one at 0.7400 (Nov 7) and 0.7233 (Dec 13). The 14 day moving average resistance 0.7225 is close to the high yesterday of 0.7233. The immediate resistance of 0.7250 is the 60 DMA, with the next resistance level at 0.7300 (30 DMA). 

The relative strenght index chart shows the overbought level at 65.00 (Nov 7) with the equivalent peak spot level of 0.7400 being unsustainable. The 15-minute chart today shows good intraday resistance at 0.7230. If there is no follow-through buying today, there is a potential retracement pullback on the channel formation on the daily chart perhaps to the 0.7000 -0.6950 in the medium term run.

The elliot wave chart also has shown declining peaks from Sept 5 of +0.018 to +0.015 to the current +0.0035.

Today, the market awaits the U.S. Nov. Retail Sales (8:30am EST) and the main focus of the market is the FOMC interest rate announcement (2:00pm EST), with the Fed expected to raise interest rates to 0.75% from 0.50%.




Topics: European Session, technical analysis, Forex, NZDUSD, New Zealnd Dollar


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