Yesterday was a pure ranging day with this pair oscillating in a 25-30 pip channel in both active sessions, perhaps this was due to the nature of activities with equal buyers and sellers at both spheres and well, the uncertainty surrounding this pair. Despite the good forecasts from economist, New Home sales saw a deep to 511K from last month’s 519K and this bad news is what might have fuelled the rise of NZD in the New York session and well into the current Asian Session with price trending in above yesterday’s high at 0.688 regions at the moment.
Let’s see what happened on the charts after yesterday’s news:
Daily Chart Analysis
All technical indicators are pointing to a downside but surprisingly in the daily charts, prices are trending higher and higher and at the moment, it is at last month’s support turn resistance trend line which was broken on Friday last week. There is a decreasing momentum as shown by the stochastics and consequently, the volumes are also declining meaning that there is more supply of NZD reducing demand for this pair. Price action is currently at the 20 day moving average which is the middle BB and if price closes below or above it then we should initiate trades in that direction bearing in mind that this flexible support or resistance curve has been significant in the last 2 months or so.
From fundamentals, tomorrow’s Fed statement and Rate decision is still very important and is somewhat influencing how things are turning out at the moment. This pair is really on a tight channel on lower time frames and with Core Durable Goods Order set to be released at 1230PM GMT and projected at 0.6% from last month’s -1.3% and CB consumer Confidence projected at 95.8 from 96.2 we shall see how these two important releases will affect the general bearing for this pair.
4 HR Chart Analysis
From this time frame, this pair is clearly bullish and price is around the resistance trend line although yesterday we saw a light reaction when price touched this resistance. Any break above the 20 4HR moving average and trend line resistance will warrant a bullish move in this pair and this might happen if you look at where the stochastics are, they are swinging in deep from the oversold region but the OBV is at the upper half of the stochastics.
15 Min Chart Analysis
This pair has been on a steady rise rallying from yesterday’s lows and in the process moving 50 pips through from the New York and Asian Sessions. Technicals are indicating a slight correction in price this might take in two directions. Price action may either correct to the 100 or 61.8 Fibonacci level before the bullish trend continues or if price action is analyzed from yesterday’s high low then price is trending around the 161.8 Fibonacci level and if you intend to go short then once price action is around that area then look for a perfect indicator combination and initiate a short, do the same if you want to initiate a long in 61.8 or 100.0 Fibonacci level.
Otherwise that’s it for today, have a pipful day.