12 Nov 2013
NZD/USD, bids ahead of 0.82 keeps range
FXstreet.com (Barcelona) - NZD/USD continues to trade confined in a narrow range with bids near 0.82/0.8220 key support having successfully slowed down the NFP-driven selling pressure from last Friday.
H&S formation in the making...
Most traders are keeping an eye on the neckline of what seems to be a developing head shoulder formation. Jim Langlands, Founder at FXCharts, notes: "A break of the neckline at 0.8190 would hint an eventual decline towards a target circa 0.7850."
NZD/USD technical view
Langlands suggests that the short term prospects may be for the range-bound conditions to extend further, especially with no risk events out of New Zealand until later on the day (20GMT), time when the RBNZ Financial Stability Report will be published, leading to some potential volatility.
Langlands thinks that "unwinding of oversold condition and we could see some more consolidation at current levels in the coming session, with the chance of another squeeze back to today’s 0.8287 high above which could head towards 0.8315 but probably not today", adding that 0.8200/90 should be used as a guide, "with a preference to sell into any strength for an eventual break to the downside towards 0.8175 and eventually lower" Langlands said.
H&S formation in the making...
Most traders are keeping an eye on the neckline of what seems to be a developing head shoulder formation. Jim Langlands, Founder at FXCharts, notes: "A break of the neckline at 0.8190 would hint an eventual decline towards a target circa 0.7850."
NZD/USD technical view
Langlands suggests that the short term prospects may be for the range-bound conditions to extend further, especially with no risk events out of New Zealand until later on the day (20GMT), time when the RBNZ Financial Stability Report will be published, leading to some potential volatility.
Langlands thinks that "unwinding of oversold condition and we could see some more consolidation at current levels in the coming session, with the chance of another squeeze back to today’s 0.8287 high above which could head towards 0.8315 but probably not today", adding that 0.8200/90 should be used as a guide, "with a preference to sell into any strength for an eventual break to the downside towards 0.8175 and eventually lower" Langlands said.