NZDUSD, EURNZD, NZDJPY and AUDNZD: Technical Overview

October 20, 2015 12:53

NZDUSD

Ever since the NZDUSD managed to reverse from 0.6250 – 0.6235 horizontal support region, during late September, the pair kept following well orchestrated ascending trend-channel on its H4 chart. Though, pair's recent weakness to surpass the channel resistance, also marked by the short-term descending trend-line, presently near 0.6840, is likely limiting any further up-move, suggesting a pullback to 0.6780 horizontal support, quickly followed by the channel lower line, near 0.6760 mark. Should the pair fails to hold 0.6760, it can come down to 0.6735, including 23.6% Fibo of its September – October advance, breaking which 0.6640 and the 0.6580 are likely consecutive lower levels that it can witness during its extended downward trajectory. Meanwhile, a break above 0.6840 can trigger its immediate advance to current month high, near 0.6900 round figure mark while a sustained move beyond 0.6900 is likely to be capped by the channel resistance, near 0.6950 at present. Moreover, a closing break above 0.6950 may fuel the pair towards important descending trend-line resistance, connecting July 2014 highs to April 2015 highs, near 0.7100 level.

EURNZD

Following its failure to break 1.8000 psychological magnet, the EURNZD formed a descending trend-channel for nearly a month. During last weekend, the pair bounced from the channel support; however, it couldn't break 1.6770, needless to say the 1.6880 short-term important resistance, encompassing 100-day SMA and the 38.2% Fibo of its April – August up-move. The pair currently seems witnessing a pullback towards 1.6500 support area prior to visiting the 1.6300 crucial support that could limit its near-term downside, including 50% Fibo and the said channel lower line. Moreover, a sustained break below 1.6300 could open doors for the pair's plunge to 200-day SMA, near 1.5850. Alternatively, a break above 1.6880, can trigger the pair's run to 1.7000 round figure mark, also including the channel resistance, breaking which it could quickly rally to 1.7250 horizontal resistance.

NZDJPY

Break of 80.45-60 horizontal resistance, coupled with sustained trading above 100-day SMA, currently at 80.90, continue favoring the NZDJPY advance to 83.00 – 83.10 horizontal mark, including 50% Fibo of its December 2014 – August 2015 decline; though, recent highs, near 82.00, can act as intermediate resistance for the pair. Should it manage to break 83.10 on a closing basis, chances of its rise to 84.50 and the 61.8% Fibo, near 85.80 can't be denied. On the downside, a break below 80.90 SMA, can find 80.45-60 as important support. Should the pair dips below 80.45, it can immediately decline to 79.20 and to the 78.80 prior to visiting the 23.6% Fibo, near 77.50-40 area.

AUDNZD

Sustained trading below 1.0900 – 1.0880 horizontal support-turned-resistance, including 38.2% Fibo of its April – August rally, suggests the AUDNZD's extended downside towards another important horizontal support, near 1.0550 – 1.0560, encompassing 61.8% Fibo. If the pair breaks 1.0550 on a closing basis, it becomes vulnerable to plunge towards 76.4% Fibo, near 1.0350. On the upside, 50% Fibo, near 1.0720, seems restricting the pair's near-term up-move, breaking which 1.0825 can act as an intermediate resistance for the pair before it could rally to 1.0900 – 1.0880 mentioned resistance area. Moreover, an extended rise beyond 1.0880 can fuel the pair to 1.1000 and can ultimately signal 1.1080 – 1.1100 area, including 100-day SMA and 23.6% Fibo.

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