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27 Aug 2013
NZD/USD building case for ST recovery? needs to break 0.7870
FXstreet.com (Barcelona) - After being offered outright since Aug 16, when NZD/USD started to liquidate off 0.8150 highs, the slide has been almost undisturbed, yet it seems as though NZD/USD may have finally found some buying interest, with 0.7750 producing a series of up-waves leading the pair to breach 0.7860 resistance before a corrective run.
Small indications bulls coming back
The latest daily close has taken out the last 2 days of losses, which if combined with the fact that some sellers riding the market lower may have been stopped out through the 0.7860 spike, along with the 20-EMA on the hourly now providing dynamic support, one may start building a short term case for the Kiwi to build up on recent gains.
NZD/USD key levels to watch
On the upside, 0.7870 is now the immediate hurdle to overcome - weekly high - followed by 0.7890/0.79 - Aug 21 swing low - and ahead of 0.7915 - intraday level. On the downside, the loss of 0.7815 would be a warning signal, with an hourly close below 0.78 probably communicating that sellers are ready to resume the downtrend, with heavy bids + profit taking expected at 0.77.
Small indications bulls coming back
The latest daily close has taken out the last 2 days of losses, which if combined with the fact that some sellers riding the market lower may have been stopped out through the 0.7860 spike, along with the 20-EMA on the hourly now providing dynamic support, one may start building a short term case for the Kiwi to build up on recent gains.
NZD/USD key levels to watch
On the upside, 0.7870 is now the immediate hurdle to overcome - weekly high - followed by 0.7890/0.79 - Aug 21 swing low - and ahead of 0.7915 - intraday level. On the downside, the loss of 0.7815 would be a warning signal, with an hourly close below 0.78 probably communicating that sellers are ready to resume the downtrend, with heavy bids + profit taking expected at 0.77.