NZD/USD Testing Declining Channel Resistance

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NZD/USD 4H Chart 11:25AM EDT 7/13/2012

The NZD/USD found support between the 0.7840 and 0.7880 support pivots noted from the last update. The rally accelerated during the 7/13 US session which pushed the NZD/USD to 0.7960. Here it came against a declining channel resistance, and so far shows respect to this level, which was also a resistance pivot back toward the end of June.

If we are able to push below the counter-trend trendline seen in the 1H chart, we are likely exposing the 0.7840 support pivot again. In the 1H chart, watch out for the pivot zone around 0.79. It seems like the market needs to clear below here to take the air out of the near-term bullish attempt.

For now, the market is still not clear on whether to respect or break higher. A break above 0.7960 exposes 0.80 in the near-term. A break above 0.80 may put away the bearish scenario for the short-medium term (rest of July).

NZD/USD 41 Chart 11:30AM EDT 7/13/2012

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.

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