Thursday, July 17, 2014

NZDUSD broke below a 3-week rising trendline amid potential bearish weekly divergence, offering scope for further downside towards key retracements


NZDUSD rallied to .8836 on July 10th, a new 3-year high near August 1 2011 peak at .8843. However, the potential bearish RSI divergence on the weekly chart cautions. 
The retreat of the .8836 peak broke through a 3-week rising trendline from .8662 low, exposing .8662 area near 38.2% of the .8402/.8836 upswing.  Beneath lies the next support at .8642 near the 50 day moving average ahead of .8619, 50% retracement, where buyers may emerge.
On the upside, a reversal back through the .8751/.8771 resistance zone (10/20 day moving averages and the aforementioned trendline support now resistance) is needed to suggest basing and signal a return of strength towards .8836.

Trading bias:

Sell zone around .8720/.8740
Stop above .8771
Target near .8642

NZDUSD weekly chart


 NZDUSD daily chart



 NZDUSD 240min chart


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