Forex Technical Update
NZD/USD 4HChart 9:27PM EDT 6/24/2012
The NZD/USD found resistance near 0.80 last week, and ended with a sharp 4H candle that not only completed a topping market action, but also a break below June's rising channel. The 4H candle was the strongest for either direction in June. After the breakout to the downside, we ended Friday with a bit of a rally, retesting the previous topping area as resistance.
So far to start the 6/25 trading week, price action is confirming resistance, and suggesting another leg to this reversal against June's rally. The next signal in the 4H chart would be the RSI breaking below 40. That would reflect a loss of the bullish momentum established in June.
A swing projection targets around 77.50. 77.33 is 50% retracement of June's bull run. We also have a double bottom resistance at 76.50 area and 61.8% retracement at 76.67. These are some support factors to consider in case our bearish outlook does not pan out, and is really just a correction.
In that case, the intra-session support to monitor for is the 38.2% retracement, 78.00 handle.
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.