Forex Technical Update Prev: NZD/USD Completes a Rising Wedge with Extended Bearish Divergence (7/14) NZD/USD Breakout: – The NZD/USD recently completed a rising wedge with a throw-over. After the 5-wave structure, the market looked in position for a correction. – However, the market never gave a bearish signal and instead followed a congestion period with further bullish breakout, confirming the upside break of the rising wedge.
A quick check of the NZD/USD pair shows a possible bull flag formation as the combination of New Zealand’s economic strength (as reported by better than expected GDP figures the other day) and potential for US dollar weakness perhaps due to QE3 rumblings mean that the Kiwi could be in for a move to the upside. […]
Forex Technical Update Prev: Bernanke’s Testimony Boosts Aussie, Kiwi and Loonie (7/13 Video) NZD/USD – The kiwi has been very strong against the greenback. The Daily chart shows a market in a rising wedge. – The RSI has remained above 40, but is in an extended bearish divergence. – The structure of the wedge (completing a 5th wave), suggests it is complete a correction might be due, especially with RSI showing a slowdown in momentum
SPOT GOLD SPOT GOLD closed @ 15540 which was ABOVE the open and breached the previous day’s high. The High was 1 Dollars from Precise Trader’s Res Zone 5 (U Turn Zone) and the Low was 0.5 Dollars from Precise Trader’s Sup Zone 1. The Hourly Oscillators are Bullish and the Price is Above the […]
Will the European Central Bank hike rates and can the U.S. labor market make up for the disappointingly low job creation in May will be the main questions on traders’ minds, as the ECB monetary policy meeting and the U.S. Non-Farm Payrolls report take the center stage in a holiday-shortened but busy week ahead. In […]
SPOT GOLD SPOT GOLD closed @ 15015 which was ABOVE the open and was within prior day’s trading range. The High was 3 Dollars from Precise Trader’s Res Tgt 1 and the Low was 2 Dollars from Precise Trader’s Sup Zone 1. The Hourly Oscillators are MIXED and the Price is Below the MA, so […]
Right now, the Dow Jones Industrial Average, S&P 500 and the CRB Commodity Index are ALL sitting on (or around) their 200 day Simple Moving Averages (SMAs). This is typically a very strong “make or break” point for the markets. Many computerized trading systems take their “long or short” bias from whether stocks are largely trading over their long-term average (200 day SMA) or not. Next week, we’ll likely see a “break or a bounce” off of the 200 day SMA.
The RBA held the overnight cash rate at 4.75%. The immediate reaction so far has been Aussie, or AUD-negative. Perhaps Australian Dollar bulls wanted to hear about some steps towards raising rates while the report did not turn up the rhetoric. The AUD/USD is contained within ranging action and is heading towards local support pivots. The AUD/JPY has failed an upside break…
The Aussie (AUD), Kiwi (NZD), and Loonie (CAD) have been in a perma-bull market since the end of 2008 and show no sign of stopping yet. Rising “commodity” prices in gold and oil have helped boost these positively correlated currencies against the USD. If this dynamic continues in Q2 2011, what are the short-term and medium-term targets for the AUD/USD, NZD/USD and USD/CAD pairs?
The NZD/USD has rebounded since an attempt to test the 61.8% retracement level near 0.71. So far, the rally represents a V-shape type reversal. The rally seen in the 4H chart shows bullish momentum breakout suggesting strength in the medium term. If the RSI in the 4H chart follows with a break above 60, the bullish scenario is more likely…