Having registered pullback moves from the May-month low, the NZDUSD couldn’t clear the 0.6930 horizontal-line and is again declining towards 0.6880 immediate support. Given the pair drops below 0.6880, the 0.6840 may offer an intermediate halt before reigniting the importance of 0.6815-20 region comprising recent low, which was also tested in May 2017. If at all the quote extend its south-run beneath 0.6815, the 0.6770 and the 0.6750 could quickly appear on the chart. Meanwhile, a clear break of 0.6930 could act as a trigger for the pair’s rise to the 0.7000 psychological mark but its following advances might be challenged by the descending TL figure of 0.7030, adjacent to the 0.7055-60 horizontal-area. In case if buyers propel prices beyond 0.7060, the 0.7100, the 0.7120 and the 0.7145-50 may become their next targets.
If we closely observe H4 chart of the EURNZD, the short-term “Head & Shoulders” bearish formation seems taking place in front us. The pair presently rests around the neck-line area of 1.6790-95, break of which could confirm the pattern and fetch it to 1.6520 and then to the 1.6455 while 1.6660 might offer intermediate halt during the plunge. Should sellers dominate trade sentiments after 1.6455, the October low around 1.6360 and the 1.6300 round-figure may please them. On the upside, the 1.6880, the 1.6930 and the 1.6955 are likely immediate resistances that the pair can witness if the short-covering takes place. However, pair’s sustained recovery above 1.6955 can fuel it to 1.7030, which in-turn negates the bearish formation and could signal further advances in direction to 1.7080, the 1.7130 and then to the 1.7215 resistance-levels.
NZDJPY is another NZD pair which is heading to its short-term resistance, here it could be the 79.25-30 horizontal-line, break of which can accelerate its recent recovery to 79.80 but the six-week long descending TL, at 80.00, may limit its up-moves then after. If the pair successfully trades above 80.00, the 80.50 and the 80.85 may become good north-side numbers to watch. Alternatively, 78.45, 78.25 and the 77.85 can entertain short-term sellers ahead of pleasing them with the recent low around 77.30. Given the pair stretches the downturn below 77.30, chances of getting the 61.8% FE level of 76.70 as support can’t be denied.
Even if the 1.1080-85 activated the AUDNZD’s U-turn, the pair’s present recovery can be challenged by an immediate descending trend-channel resistance of 1.1190.; though, break of which could help strengthen the moves towards 1.1220, the 1.1255 and then to the 1.1290 resistances. Should the pair continue trading up after 1.1290 break, 61.8% FE level of 1.1360 can flash in Bulls’ radar. In case if the pair fails to sustain latest uptick, the 1.1110, the 1.1085-80 and the channel-support of 1.1055 can be availed as nearby rests but the break of 1.1055 might drag the quote to 1.1020 and then to the 1.1000 support-marks.
Cheers and Safe Trading,
This article was originally posted on FX Empire
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