NZD/USD Technical ANALYSIS: BEARISH
Bullish candle sample, RSI divergence trace at NZD/USD bounce forward4-hour chart suggests corrective restoration could also be underway alreadyLonger-term positioning continues to argue for a broadly bearish bias
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The New Zealand Greenback could also be making ready to launch a restoration towards its US counterpart. Costs put in a bullish Piercing Line candlestick sample on a take a look at of help within the Zero.6197-Zero.6268 space, the August – September 2015 backside. Constructive RSI divergence bolsters the case for the upside state of affairs.
The primary upside hurdle is marked by support-turned-resistance at Zero.6328, the 23.6% Fibonacci enlargement. Establishing a foothold again above that on a each day closing foundation opens the door for a retest of the Zero.6425-Zero.6441 zone, the October 2018 backside.
Each day NZD/USD chart created utilizing TradingView
Sizing up extra quick positioning on the four-hour chart, it seems to be like a bounce is already underway. Costs have damaged above resistance guiding them decrease from the September 12 swing prime, implying a change of near-term bias. Minor upside obstacles line up at Zero.6298, Zero.6320 and Zero.6359 from right here.
Four-hour NZD/USD chart created utilizing TradingView
However, the month-to-month chart continues to color a broadly bearish image. Costs completed August with a breach of 19-year uptrend help, implying an enduring pivot in favor of the draw back. Invalidating the case for structural weak spot in all probability wants a convicting break above the Zero.6829-Zero.6917 area.
Month-to-month NZD/USD chart created utilizing TradingView
On stability, means that any upside progress within the close to time period is likely to be corrective inside a broader downshift. Pre-positioning for the upcoming RBNZ charge resolution might be in play. Costs completed final week at a four-year low, which could have appeared over-extended forward of punchy occasion threat.
NZD/USD TRADING RESOURCES:
— Written by Ilya Spivak, Forex Strategist for DailyFX.com
To contact Ilya, use the Comments part beneath or @IlyaSpivak on Twitter