The inside move on the NZD USD chart is indicating a possible change intrend to the downside but the inability to break equity index pricesappears to be holding this currency pair up.
The inside move on the NZD USD chart is indicating a possible change in trend to the downside but the inability to break equity index prices appears to be holding this currency pair up. While Thursday’s lower close has the appearance of a reversal to the downside, it didn’t meet all of the criteria to form a true reversal top. Nonetheless, selling pressure is likely to accelerate to the downside if Friday’s low at .6511 is violated.
The hourly chart seems to be having a major influence on this market today. Today’s top at .6615 triggered a closing price reversal top that was confirmed by follow-through selling. Based on the hourly range of .6615 to .6535, look for a possible selling opportunity on a rally back to .6575 to .6584. A price cluster forms between the open at .6568 which makes .6568 to .6575 an important resistance area.