Forex: NZD/USD – Obstacles heading north
_iNVEZZ.com Monday July 29th_: The NZD/USD last week added 1.40 percent in value, with the weekly candle closing at 0.8075. The pair reached the week’s high at 0.8105 on Thursday (25 July), which was also a 34-day top, and at that point the pair touched the flat 89-week simple moving average, potentially a resistance which could push the price to the downside.
So far today, trading has been within a 38-pip range, from 0.8059 to 0.8097. The pair is currently residing at 0.8058.
Since 25 July the falling 89-day simple moving average has been hindering the price from going higher and is adding bearish pressure. Since then also, a resistance zone from 0.8075 to 0.8115 has been tested. Above this range, the primary targets ought to be 0.8585 (30 April high) first and then 0.8675 (11 April top, from which the latest downtrend started).
The pair has been reluctant to take a direction since the end of last week, moving within the range 0.8053 to 0.8105.
In the event of setting sail to the south, the first target would be the 0.8011 support with 0.7970 next. Further downwards, the 24 June low of 0.7682 would need to be broken for the downtrend from 11 April to be expanded.
Resistances: 0.8075, 0.8115, 0.8135 and 0.8210.
Supports: 0.8053, 0.8011 and 0.7970.