NZD/USD positioned for gains

Aug 21, 2017

The situation on the hourly NZD/USD chart is very similar to the situation on other commodity charts. The pair has found support in a combination of the 55-hour SMA and the lower trend line of the junior ascending channel pattern.

The rate is most likely going to surge up to the 0.7350 mark, where the weekly R1 is located at. In addition, near that level the resistance line of the dominant channel down pattern is located at.

However, it has to be taken into account that during the last few weeks, the pair has not managed to pass a resistance level near the 0.7330 mark. Although, the basis for the resistance is for now unclear.

Aug 22, 2017

Trade closed: target reached

The resistance level, which was suggested to be taken into account previously, has stopped the Kiwi’s surge against the Greenback once again. Due to that reason the pair has declined.

Moreover, the high levels have been used to map two additional patterns. First of all there is the new junior descending pattern, which will guide the rate lower in the near future. Secondly, there is a larger scale channel up pattern.

All in all, during the next 24 hours the pair is most likely going to recover after the losses suffered on Monday. However, in the process, it will face the resistance of the 55 and 100-hour SMAs, at 0.7317 and 0.7308 levels.