NZD/USD: Short-term consolidation - Commerzbank

Sandeep Kanihama FXStreet Contributor

Axel Rudolph, senior analyst at Commerzbank, suggests that the NZD/USD pair is likely to stall for a short-term after its advance has taken it to the 55- and 200-week moving averages at .6930/87.

Key Quotes

“The reason is that the recent high at .6885 has been accompanied by negative divergence on the daily RSI. This points to at least short-term consolidation.”

“Further up the May and June highs are to be found at .7053/61 and the February and March lows at .7153/77. Support comes in along the 200 day moving average at .6859 and also along the three month uptrend channel support line at .6807. While the July low and August as well as September highs at .6727/.6687 underpin, we will retain our bullish view.”

“Further support can be seen between the 55 day moving average at .6629 and the October 22 high at .6636 as well as at the .6500/.6424 September and October lows.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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