Forex Technical Update

NZD/USD 4H Chart 9:05PM EDT 7/23/2012


The NZD/USD has been in sideways trading since mid June. You can break the range since into 3rds each around 75-80 pips. The top third is between roughly between 0.80 and 0.8075. The middle 3rd is between 0.7920 and 0.80, while the lower third is between 0.7840 and 0.7920.

Risk-off trading since last week's Thursday (7/19) session has brought the NZD/USD down to the lower third as we get into the 7/24 Asian session. The current screenshot is taken at about 9:05PM EDT. At 10:30PM EDT, there is an HSBC report on Chinese manufacturing, which could be an event risk. Poor data can weigh on the NZD/USD toward the 0.7840 low. Otherwise, this market is seen as flat, with tendency to revert toward the middle of the middle third around 0.7960.

For now, with headlines being very risk-off lately, I think there is a good chance to break 0.7840 this week.

The daily chart shows that if the market does break below 0.7840, it exposes some previous pivots around 0.7650. A breakout target using the width of the range projects to 0.7620.

NZD/USD Daily Chart 9:08PM EDT 7/23/2012


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.

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.