New Zealand Dollar: NZD/USD (NZD=X) lowest level in a decade

New Zealand Dollar: NZD/USD (NZD=X) lowest level in a decade

New Zealand Dollar: NZD/USD (NZD=X) lowest level in a decade

From the daily chart, we notice on Oct 1 NZD/USD declined to its lowest level in a decade. However, the price remained in the current trading zone 0.6236- 0.6438 indicating to seller’s hesitation to keep pressing the price at this stage.

Additionally, we notice a bullish divergence between (RSI) and the price similar to the one on Aussie Dollar. Hence, NZDUSD could be looking for a test of the high end of the zone contingent on clearing the daily and weekly resistance levels marked on the chart (zoomed in).

That said, any close below the low end of the zone could send NZDUSD towards 0.6136. Although, the daily support level at the Oct 1 low should be considered. See the chart to know more about lower trading zone with weekly support levels to watch in a further bearish scenario.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 0.64.

The projected lower bound is: 0.62.

The projected closing price is: 0.63.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 61.7209. This is not an overbought or oversold reading. The last signal was a buy 11 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 44.65. 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 12 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 35. This is not a topping or bottoming area. The last signal was a buy 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 4 period(s) ago.

Rex Takasugi – TD Profile

FOREX NZD= closed down -0.000 at 0.629. Volume was 100% below average (consolidating) and Bollinger Bands were 33% narrower than normal.

Open     High      Low     Close     Volume___
0.630 0.630 0.629 0.629 147
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 0.63 0.64 0.66
Volatility: 7 8 9
Volume: 32,024 32,761 38,311

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.

Summary

FOREX NZD= is currently 5.0% below its 200-period moving average and is in an downward 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 bearish on NZD= and have had this outlook for the last 12 periods.

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