(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
7/07/2009 – NZD/USD – Price action on NZD/USD, a daily chart of which is shown, has made a bullish pullback correction after breaking down below a key uptrend support line extending from the March lows. Any breakdown below 0.6240, which was the low point before the pullback, would confirm a continuation of the trendline breakdown, and should easily target strong further support in the key 0.6100 support/resistance region. And any subsequent breakdown below that 0.6100 level could indicate a major reversal in the current overall uptrend. For the time being, however, this currency pair continues to travel in a sideways consolidation, much like other dollar-based pairs. To the upside, the key level to watch would be the 0.6600 price region, a breakout above which would signify a clear uptrend continuation.
James Chen, CMT
Chief Technical Strategist
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.