The New Zealand dollar spent the early part of the trading session on Tuesday following, but you can see that we have recovered quite a bit. The 0.65 level offered significant support, as one would expect due to the fact that it has showed support in the past, as we have bounced from there a couple of times already. Beyond that, it is a “large, round, psychologically significant figure”, which of course is an area of attraction anyway.
The next question now is whether or not the 0.65 level will hold. So far, it has but if we were to break down below the 0.65 level on a daily close, or perhaps even the 0.6480 level, then the market will almost certainly unwind quite a bit. That being said, recently we have fallen rather hard, and are a bit oversold. The question now is whether or not this will hold.
Looking at the chart, I believe that there is a bit of resistance near the 0.66 handle, so it would not surprise me at all to see some selling pressure there. If we can break above that level we also have the 50 and the 200 day EMA indicators above sloping lower. It is because of this that I think we will see a lot of choppiness in the meantime but given enough time we will need to make a decision. The downside is obvious, the upside would probably be recognized by a daily close above the 50 day EMA, and perhaps even the 0.6650 level. At that point, we could be looking at a move back to the 0.68 level above. At this point, we are trying to figure out whether or not we are entering a fresh, leg lower, or if we are simply building a 300 point consolidation range.
The next question now is whether or not the 0.65 level will hold. So far, it has but if we were to break down below the 0.65 level on a daily close, or perhaps even the 0.6480 level, then the market will almost certainly unwind quite a bit. That being said, recently we have fallen rather hard, and are a bit oversold. The question now is whether or not this will hold.
Looking at the chart, I believe that there is a bit of resistance near the 0.66 handle, so it would not surprise me at all to see some selling pressure there. If we can break above that level we also have the 50 and the 200 day EMA indicators above sloping lower. It is because of this that I think we will see a lot of choppiness in the meantime but given enough time we will need to make a decision. The downside is obvious, the upside would probably be recognized by a daily close above the 50 day EMA, and perhaps even the 0.6650 level. At that point, we could be looking at a move back to the 0.68 level above. At this point, we are trying to figure out whether or not we are entering a fresh, leg lower, or if we are simply building a 300 point consolidation range.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.