New Zealand Dollar: NZD/USD (NZD=X) technicals indicates buyer’s weakness to rally the price further

New Zealand Dollar: NZD/USD (NZD=X) technicals indicates buyer’s weakness to rally the price further

New Zealand Dollar: NZD/USD (NZD=X) technicals indicates buyer’s weakness to rally the price further

From the daily chart, we notice on Friday NZD/USD rebounded then closed below the high end of current trading zone 0.6224 – 0.6438. Same thing happened on Monday, indicating to buyer’s weakness to rally the price further.

Hence, NZDUSD could be on its way for a test of the low end of the zone. Although, the weekly support levels underlined on the chart (zoomed in) should be kept in focus. Further close below 0.6224 could open the door for more bearishness towards 0.5911. That said, sellers need to pay a close attention to the weekly support levels marked on the chart.

On the other hand, any successful close above the high end of the zone, may push NZDUSD towards the vicinity of 0.6565-55 contingent on clearing the weekly resistance levels underscored on the chart.

Technical Indicators

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.

Candlesticks

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 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 83.2905. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 49.83. 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 6 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 100. This is not a topping or bottoming area. The last signal was a sell 0 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 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX NZD= closed down -0.000 at 0.642. Volume was 99% below average (consolidating) and Bollinger Bands were 24% narrower than normal.

Open     High      Low     Close     Volume___
0.643 0.643 0.642 0.642 512
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 0.64 0.65 0.67
Volatility: 6 8 9
Volume: 27,221 33,069 39,638

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 3.8% 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 31 periods.

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