The NZD/USD currency exchange rate continues to move as expected, in general. The issue it that the speculated lower trend line of the medium term descending pattern was passed on Thursday morning. The proposed support actually acted as a resistance to the currency exchange rate. However, after a period of fluctuations the currency pair returned to test the resistance cluster near the 0.7425 mark.
The reason for that was the 100-period SMA of the four hour chart, which was unnoticeably providing support to the Kiwi against the US Dollar. Although, the medium term downwards direction has not been changed. The rate is most likely going to bounce off the resistance cluster at 0.7425 and continue to move to the lower trend line of the dominant pattern.
The reason for that was the 100-period SMA of the four hour chart, which was unnoticeably providing support to the Kiwi against the US Dollar. Although, the medium term downwards direction has not been changed. The rate is most likely going to bounce off the resistance cluster at 0.7425 and continue to move to the lower trend line of the dominant pattern.
The New Zealand Dollar was about to pierce the resistance of the 100-hour simple moving average at the 0.7450 mark against the US Dollar, as fundamental changes occurred. The release of the US employment data set, which came out much better than forecasted by the majority of world’s financial analysts, beat the NZD/USD pair lower.
During the move the strong support cluster near the 0.7425 mark was passed. The future movements of the pair will be clear, when it breaks free of the just mentioned cluster. If the pair passes the resistance of the cluster of significance, it would resume the surge up to the 0.7460 mark, where close by various levels of resistance would be located by that time.
On the other hand, the resistance can hold, and the decline down to the long term support will resume.