NZD / USD Technical ANALYSIS: NEUTRAL
- NZD / USD countertrend support break hints 2-year downturn moves back into play
- Short-term setup hints instant sales pressure has given way to indecision 19659003] RBNZ-inspired volatility can trigger outbreaks that define long-term price trends
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A breach of counter-trend support that drives the New Zealand Dollar higher since mid-June suggests that the dominant decline established from July 201
Immediate resistance in the traffic region is 0.659-91. A break back that sees a dense layer of back-to-back support levels that range from 0.6653 to 0.6727. Beyond that, the dominant downtrend peak with the swing peak in July crosses at 0.6791, providing a bias-defining barrier.
NZD / USD Daily Chart Created Using TradingView
When zooming in on a four hour chart, it looks like that prices have broken the limits of the downturn in the short term and set themselves into a traffic stop area. Indecision and closeness to support can discourage sellers on risk / reward reasons in the short term and shed light on the looming decision on RBNZ interest rate for a possible catalyst.
NZD / USD 4 hour chart created using TradingView
The announcement may cause a critical outbreak, regardless of direction. The monthly chart reveals that NZD / USD is wedged between resistance leading them lower since mid-2014 and 19-year uptrend support. A meaningful price fluctuation in one way or another can define the direction for months and years ahead.
NZD / USD Monthly Chart Created Using TradingView
NZD / USD TRADING RESOURCES:
— Posted by Ilya Spivak, Currency Strategist for DailyFX. com
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