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12 Jun 2014
Kiwi found its short-term limit at 0.8650 resistance
FXStreet (Moscow) - NZD/USD retraced lower form the resistance of 0.8550, but the upside momentum is still strong and the bulls might be getting ready for a new assault
Kiwi takes its flight
NZD/USD did a good job on RBNZ rate hike expectations as they drove the pair to 0.8600 by Wednesday close and one might have reasonably expected some sort of «buy the rumor sell the fact» market behavior following the RBNZ rate hike. But everything went wrong as the central bank officials sounded rather hawkish and signaled that further tightening is on cards, despite the threat of NZD rise. RBNZ was concerned about inflation and determined to return the rate to neutral stance. Most likely, the market will be playing out this theme during today’s session, thus, kiwi might go even higher. The first resistance is seen at 0.8670, while the support lies at 0.8600.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8642, and next resistance can be seen at 0.8653 (Daily High), 0.8668 (Monthly High), 0.8724 (Weekly Classic R3), 0.8741 (Annual High) and 0.8741 (YTD High).
Support below can be found at 0.8640 (Weekly Classic R2), 0.8631 (Daily Classic R3), 0.8604 (Daily Classic R2), 0.8588 (Hourly 20 EMA) and 0.8576 (Yesterday's High).
Regarding candlestick formations, we can see Hammer formation on the 1-hour .
Kiwi takes its flight
NZD/USD did a good job on RBNZ rate hike expectations as they drove the pair to 0.8600 by Wednesday close and one might have reasonably expected some sort of «buy the rumor sell the fact» market behavior following the RBNZ rate hike. But everything went wrong as the central bank officials sounded rather hawkish and signaled that further tightening is on cards, despite the threat of NZD rise. RBNZ was concerned about inflation and determined to return the rate to neutral stance. Most likely, the market will be playing out this theme during today’s session, thus, kiwi might go even higher. The first resistance is seen at 0.8670, while the support lies at 0.8600.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8642, and next resistance can be seen at 0.8653 (Daily High), 0.8668 (Monthly High), 0.8724 (Weekly Classic R3), 0.8741 (Annual High) and 0.8741 (YTD High).
Support below can be found at 0.8640 (Weekly Classic R2), 0.8631 (Daily Classic R3), 0.8604 (Daily Classic R2), 0.8588 (Hourly 20 EMA) and 0.8576 (Yesterday's High).
Regarding candlestick formations, we can see Hammer formation on the 1-hour .