NZD/USD Trading on Top of a Key Trendline Support

by Admin

Awards 2013

NZD/USD Daily chart 2/26/2013 9:20AM EST


Sideways: The NZD/USD has been trading sideways throughout 2013, but with a bit of a bullish bias. It did make new highs as you can see in the daily chart, but it kept retreating back to 0.83. As far as momentum goes, the daily RSI has held above 40, so the bullish momentum is maintained, but since 2013, it has also held under 60, showing consolidation momentum.

Rising trendline support: Price action fell in the last couple of weeks from a new 2013 high. The bearish price action is now coming up against a rising trendline that goes back to July 2012.  The sideways to bullish mode remains if the market can come back up and hold above 0.83. Otherwise, if the trendline is broken, the RSI falls below 40, and 0.83 then becomes resistance, we have a bearish signal.

Bernanke: It is very possible that after Bernanke’s testimony today that a NZD/USD and other USD-crosses will find direction. Talk of defending stimulus could pressure the USD, and hold the trendline, while talk of a QE-exit, could give the USD strength and push NZD/USD below the trendline.