Kiwi dollar went on the back foot today, with trading slightly lower prices over the early hours of Asia, continuing the downward trend that has been in the game since January 14, which has also seen a further acceleration / extension on Friday. Bulls experienced a brief renaissance brought by stronger than China Q4 GDP expected but the upward pressure quickly evaporated with prices testing the flexible support of 0.8245 at the moment.
Time Table
This highlights the strong downward trend in the NZD / USD, and suggest that bearish momentum still remain in the game. However, it should be noted that it is not all roses parks in China, even as GDP is actually below expectations when accounting for seasonality. In addition, production figures and retail sales industry are both below expectations, suggesting that the Chinese economy is certainly not as strong as the number of overall GDP growth may suggest. Therefore, we should not hold against NZD / USD not above to hold the gains.
From a technical standpoint, the bulls seem to do pretty well. The decline this morning managed to stay above the downward trend line, while the Stochastic readings suggest that a bull market is in play now - recognizing that a bullish rebound from the trend line is possible , which would open a potential push towards 0.828. Then again traders who wish to participate in this potential movement needs to realize that they would go against the short-term momentum is bearish and weak Chinese fundamentals that is bearish for NZD as well. Therefore, even if the bulls faced well amid strong downward pressure, the probability of a sharp rebound is low.
Table Daily
Daily Chart is bearish as well, with the share price today break down channel up, adding additional downward pressure for a move towards 0,815. Stochastic readings are in agreement, with the current level near 50.0 Stoch midst of a bear market is at stake Therefore, it will really brave (read: rash). trader to play the short-term rebound. Certainly, with RBNZ would raise rates soon, the likelihood of become highly NZD is there, but in this case NZD USD will face with the rise, and the end result could simply be trading direction, least on the side which is similar to what we have seen since September 2013. this increases the likelihood of holding 0,815, but does little to suggest that NZD / USD will be able to rally all the way up in the short term by 0.84 .
Links:
GBP / USD - 1.6450 resistance Rebounds Off Again
AUD / USD - Drops to multiyear Low 0.8750 Close
EUR / USD - Drops Low to eight weeks Around 1.35
This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
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Read More : NZD/USD Technicals – Bearish Trend Remains Firm
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