(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
5/18/2009 € NZD/USD € Price action on NZD/USD, a daily chart of which is shown, has tentatively respected an uptrend support line extending from the long-term lows in early March. This occurs right after price fell from strong horizontal resistance in the 0.6100 price region. If the pair continues to respect the uptrend support line, the clear upside target is a re-test of this 0.6100 level, with any breakout above targeting further resistance around 0.6300. In the event of a subsequent breakdown below the uptrend support line, a key downside target resides around the major 0.5500 price region, which represents the last major swing low in the pair.
James Chen, CMT
Chief Technical Strategist
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