New Zealand Dollar: NZD/USD (NZD=X) seem to be tracing out a bullish Head and Shoulders
The New Zealand Dollar may be carving out a bottom against its US counterpart. Prices seem to be tracing out a bullish Head and Shoulders (H&S) reversal pattern having tested four-year support in the 0.6197-0.6268 area. Positive RSI divergence points to ebbing selling pressure, bolstering the case for gains.
A daily close above the H&S pattern’s neckline at 0.6349 would confirm the setup, implying a measured upside objective near the 0.65 figure. Critically, that would leave intact the dominant downtrend from July 2017, suggesting the chart setup is telegraphing a corrective bounce rather than a change of trend.
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.
During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 22 white candles and 27 black candles for a net of 5 black candles.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
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 44.4445. This is not an overbought or oversold reading. The last signal was a buy 15 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 45.51. 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 16 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 11. This is not a topping or bottoming area. The last signal was a sell 1 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 8 period(s) ago.
Rex Takasugi – TD Profile
FOREX NZD= closed down -0.000 at 0.630. Volume was 100% below average (consolidating) and Bollinger Bands were 60% narrower than normal.
Open High Low Close Volume___
0.630 0.630 0.629 0.630 51
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.63 0.64 0.66
Volatility: 7 8 9
Volume: 31,098 31,891 37,946
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 4.9% 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 2 periods.