NZDUSD – Steady Gains to Continue
18th August 2016
….July & August have both seen NZDUSD peak above .7300 but our signals for sentiment indicate that the upside remains the market’s focus and levels beyond this year’s highs are expected in the coming weeks.
- RSI signals have been bullish throughout this year (positive trigger given Sept 2015) with only May’s unconfirmed break threatening that stance.
- July’s RSI dip based at higher levels.
- The 21 week moving average has supported the currency pair since February – even May’s dip bottomed around that point.
- The mid-point of the weekly Keltner channel attracted NZDUSD buyers at the last profit taking setback.
These supporting factors are the backdrop to demand that is developing this week. An expected break above last week’s .7338 top – or a weekly close above .7300 – should lead to an upside acceleration in NZDUSD to .7454 or even .7607 in the coming weeks.
For contrarians the RSI and it’s moving average point are the indicators to watch for the first signs of exhaustion in the positive NZDUSD trend.
