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Forex Technical Update
Previous: NZD/USD Completes a Double Top (10/3)
NZD/USD 1H Chart 10:20PM EDT 10/11/2012
Declining triangle at double top support: The NZD/USD has completed a double top but has been basically consolidating and oscillating across the double top (DT) support. This has been a declining triangle consolidation as the 1H chart shows. During this period, the RSI has been stuck mostly between 40 and 60, showing consolidation momentum, but the fact that it dipped below 30 before gives it a slightly bearish bias.
Bullish breakout: During the 10/12 Asian session, the NZD/USD is breaking above the declining triangle resistance resistance. Don’t get too excited yet, this price action is not as bullish as a break below the triangle support would have been bearish. It simply “neutralizes the bearish bias of a descending triangle, but it DOES expose the original of the triangle at 0.8263.
The immediate factors to monitor for resistance is the previous resistance pivot just above 0.82, and the 200-hour SMA near 0.8205. If the market can hold above the 0.8180 pivot, it should focus on the 0.8260 area, which is between 50% and 61.8% retracement of the Kiwi’s bearish run from the 0.8354 September high and the 0.8143 October low.
NZD/USD 4H Chart 10:25PM EDT 10/11/2012
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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