(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; 50-period simple moving average in light blue.)
7/21/2009 – NZD/USD – Price action on NZD/USD, a daily chart of which is shown, has reached up to a confluence, or crossing of resistance factors as of Tuesday (7/21/2009) morning. The first resistance factor is the key 0.6600 support/resistance region, which represents the region of the last major high hit in early June. The second resistance factor is a long-term downtrend resistance line extending from the second top of the double-top high around 0.8200 back in March of 2008. The third resistance factor is the underside of an uptrend line extending from the March 2009 lows, which was just broken down earlier this month. Any strong breakout above this resistance confluence should reach for further resistance around the 0.6800 price region. If the current resistance confluence is respected, major downside support resides in the important 0.6100 support/resistance price region.
James Chen, CMT
Chief Technical Strategist
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