NZDUSD Bearish short Bullish longHello everyone, as we all know the market action discounts everything :)
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The NZD/USD pair closed the first day of the week virtually unchanged and continues to move sideways during the first half of the day on Tuesday.
Today the price was able to reach the resistance zone between 0.7132 - 0.7159 but wasn't able to hold above it or breakout which shows how the Bears still have power in them to keep the price sideways move for the time being.
Possible Scenarios for the market :
Scenario 1 :
The price is trending near the resistance zone 0.7132 - 0.7159 if the Bulls were able to gather some force then we will see a breakout happen to that zone which will lead to more buyers going in which will push the price up to the main target at the resistance line at 0.72130.
Scenario 2 :
Today started Bullish but mid-day it turned Bearish, The bears are trying to drive the price back and if there were able to take control over the market then we will see the price drop to the support line at 0.70870 where the battle for control will start again, and looking at technical analysis shows that the outcome will probably be for the Bulls which will push the price back up to the resistance line at 0.7132
Technical indicators show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Strong Bullish sign)
2) The RSI is at 61.58 showing Great strength in the market. No divergences were found between the indicator and the market.
3) The MACD is above the 0 line which indicates that the market is in a Bullish state, With a positive crossover between the MACD line and the Signal line.
Daily Support and Resistance :
support Resistance
1) 0.7104 1) 0.7132
2) 0.7087 2) 0.7141
3) 0.7077 3) 0.7159
Weekly Support and Resistance :
support Resistance
1) 0.7069 1) 0.7163
2) 0.7025 2) 0.7213
3) 0.6976 3) 0.7256
Fundamental point of view :
The dollar was down on Tuesday morning in Asia, as investors await U.S. inflation data that could provide a clue to the U.S. Federal Reserve’s timetable for asset tapering.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.06% to 92.597, after retreating from a two-week high of 92.887 hit earlier on Monday.
Later in the session, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) data for August. Previewing the inflation report, "August's Core CPI figure is critical for the and for markets. According to FXstreet
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
