Forex Technical
NZDUSD Moves back to retest the Range Resistance
May 5, 2010
Gary Fichardt - FxBigDog
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Chart Analysis
The NZDUSD broke out of a range in last week after being consolidating for a couple of weeks. The break out was seen as the 1st move forward for a stronger Kiwi.
Investors are now looking at the US Dollar as a safe haven since the Euro has show some uncertainly in the European economy. So traders are speculating that the NZD might not be holding above the resistance range area for too long.
Sadly for the NZD, the USD is showing continues strength and the technical's are indicating that a deeper move to 0.7098 is forth coming.
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Analysis
Looking at the technical's on the 4 hour chart, the US Dollar has gain back most of it's losses in the last 24hrs. The question is, can the Kiwi's economy be strong enough to hold off the slide against the Greenback. Traders will be focused on daily signs that support is holds. Key level of support that will decide on direction of this pair, will be 0.7098.
Traders must keep in mind that we still have the Non Farm Payroll coming up this Friday, that can change the momentum for the US Dollar, as there are still concern about the amount of job loss in the US.
It is very important that traders find a technic that they are comfortable using, then be consistent in their trading .
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