(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; 50-period simple moving average in light blue.)
8/13/2009 € NZD/USD € Price action on NZD/USD, a daily chart of which is shown, after having broken out above a confluence of resistance early last week (that included the key 0.6600 resistance level and a long-term downtrend resistance line extending from the March 2008 highs), hit a high just above 0.6800, pulled back to re-test the 0.6600 new support level, and has currently recovered to re-test the 0.6800 resistance level once again. This appears to be a classic pullback after breakout that could signal a resumption of the current prevailing uptrend if price is able to breakout significantly above the 0.6815 uptrend high, which represents a 10-month high for the pair. In this event, further upside resistance resides in the 0.6950 price region. In the event of another downside pullback move, the 0.6600 level should continue to provide support for the pair.
James Chen, CMT
Chief Technical Strategist
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