New Zealand Dollar: NZD/USD (NZD=X) Ignores Soft Cons. Spending Report
New Zealand Credit Card Spending for September gained 4.8% in September, sharply lower than the August gain of 6.0%. This points to lower consumer spending, a key driver of economic activity. Still, the New Zealand dollar is in positive territory on Tuesday. We’ll get a look at trade balance on Wednesday, with the trade deficit expected to narrow to NZ$1.375 billion.
NZD/USD Technical Analysis
NZD/USD has started the week with gains and the pair has tested resistance at 0.6420 on Tuesday. This is a significant development, as this line has held since mid-September. The trend for the pair is higher, as can be clearly seen from the 9 EMA line. On the upside, there is resistance at 0.6460. The pair could put pressure on this line during the week.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 0.65.
The projected lower bound is: 0.63.
The projected closing price is: 0.64.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 91.0817. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 20 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 61.93. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 21 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 187.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 13 period(s) ago.
Rex Takasugi – TD Profile
FOREX NZD= closed down -0.000 at 0.641. Volume was 11% below average (neutral) and Bollinger Bands were 24% narrower than normal.
Open High Low Close Volume___
0.641 0.643 0.640 0.641 30,032
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.63 0.63 0.66
Volatility: 8 8 9
Volume: 31,895 31,847 37,588
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX NZD= is currently 3.1% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of NZD= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on NZD= and have had this outlook for the last 7 periods.
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