Since
late November 2017 the New Zealand Dollar is trying to fight against the US
dollar. It’s a hard game to play. The NZD/USD pair touched its highest level
since then at 0.7436, having formed a double top with the September 20 top. Meanwhile as seen on the daily chart the New
Zealand Dollar’s upwards march is hindered fundamentally by disappointing CPI
figures and technically by the formed Shooting Star candlestick. Adding to this
picture the RSI divergence comparing to the uptrend line staring from late
December 2017.
The pair is facing support at the 61.8% Fibonacci retracement of latest August
to November down slope at 0.7260, which in case of breaking would open doors
for testing the 50% Fibo of same decline at 0.7165.
During the past weeks we witness some signs of strength towards the upside, but
yet remain difficult to catch. The immediate movement of the pair is yet
confined by higher highs and lows, which do not exclude a sideways consolidation.
So entering short is not a good option right now having the expectations for
another bulls’ intervention.
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