Inside Move in NZD USD Indicates Impending Volatility

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.

Daily Analysis

NZD USD

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.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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