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- NZD\/USD consolidates above the 0.8630 support;<\/li>\n
- Daily trend remains bullish, towards 0.8845,\u00a0as the higher lows configuration is intact;<\/li>\n
- Below \u00a00.8630, bearish pressure abruptly increases towards\u00a00.8514-0.8550<\/li>\n<\/ul>\n
Analyzing the configuration and direction of the swing highs and lows, in direct correlation with the main S\/R levels and the major\u00a0Simple Moving Averages\u00a0(50, 100 and 200) , can provide an accurate story of the chart.\u00a0Weaknesses in the trend\u00a0can be identified early, along with key levels where traders ditch or reverse their positions.<\/i><\/p>\n
NZD\/USD reached a fresh multi-year high last week, at 0.8745, 100 pips shy of 0.8842, 2011 high. While US data continues to beat expectations, \u00a0Core Retail Sales at 0.7%, 0.2% higher than the forecast, and\u00a0Retail Sales up 1.1% vs 0.8% forecast;\u00a0reactions are muted as traders are waiting for Yellen’s Speech and of course tomorrow’s\u00a0Speeches from FOMC Members Plosser and Kocherlakota.
\nThe US Dollar inaugurated this week vigorously, prompting NZD\/USD to test an intermediary support for the second time. Traders who are trailing this pair higher should pay close attention to possible exhausting signs.<\/p>\nDaily View<\/b><\/p>\n
![\"NZDUSD](\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/04\/NZDUSD-Daily-14th-April.png\")
<\/p>\nThe 4h and Daily uptrend configuration is intact, as the pair is always keeping up with it’s higher swing lows and higher highs. Daily RSI is showing a small negative divergence; albeit it doesn’t amount to much while the most recent lows at 0.8623 remains intact.<\/p>\n
Intraday Consolidation Signs<\/strong>
\n![\"NZDUSD](\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/04\/NZDUSD-1H-14th-April.png\")
<\/p>\nThe 1H chart shows strong consolidation between 0.8630 and 0.8700. The pair has bounced for the second from off the 200 Simple Moving Average, 50.00% Fibonacci Retracement level and March\u2019s pivot zone. It should be noted that only above 0.8700, above the short term lower high, the main uptrend will fully resume and consequently target 0.8745, then 0.8800-0.8841 area.<\/p>\n
Failure to cross above 0.8700 will leave price in a short term triangle formation, which will most likely be broken out of tomorrow. If the lower high remains intact and NZD\/USD falls below 0.8630, then we will see a larger correction towards 0.8545, the 200 SMA on 4H chart, and 0.8514, the main price pivot zone from March-April.<\/p>\n
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\nPrepared by Alexandru Z., Chief Currency Strategist at <\/i>Capital Trust Markets<\/i><\/a><\/p>\n<\/p>\n
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Technical Sentiment:\u00a0Neutral Key Takeaways NZD\/USD consolidates above the 0.8630 support; Daily trend remains bullish, towards 0.8845,\u00a0as the higher lows configuration is intact; Below \u00a00.8630, bearish pressure abruptly increases towards\u00a00.8514-0.8550 Analyzing the configuration and direction of the swing highs and lows, in direct correlation with the main S\/R levels and the major\u00a0Simple Moving Averages\u00a0(50, 100 and … <\/p>\n