FXstreet.com (San Francisco) - NZD/USD touched a 3-month high on Thursday as it traded a broad intraday range between 0.8069 and 0.8184 before ending the North American session unchanged from its starting price at 0.8098.
The mentioned price action resulted in the print of a bearish Pinocchio bar formation on the daily chart, a reversal pattern which may typically form at market highs. Also, the pattern occurs at key Fibonacci resistance at the 50% retracement of the 0.8841/0.7371 downswing.
To the downside, the 21-day EMA at 0.8006 may act as support should the bears regain the downside, then 0.7963 (28 June high) and 0.7950 (100 EMA). To the upside, resistance lies at 0.8125 (50%, previous day’s range), 0.8143 (1 Aug high) then, further upward, 0.8279 (61.8%, 0.8841/0.7371).
The mentioned price action resulted in the print of a bearish Pinocchio bar formation on the daily chart, a reversal pattern which may typically form at market highs. Also, the pattern occurs at key Fibonacci resistance at the 50% retracement of the 0.8841/0.7371 downswing.
To the downside, the 21-day EMA at 0.8006 may act as support should the bears regain the downside, then 0.7963 (28 June high) and 0.7950 (100 EMA). To the upside, resistance lies at 0.8125 (50%, previous day’s range), 0.8143 (1 Aug high) then, further upward, 0.8279 (61.8%, 0.8841/0.7371).
