HiFX Weekly FX Technical Report

Thursday, 18 January 2018, 4:10 pm
Article: HiFX

NZD/USD
Last Price: 0.7330
Daily: Market focusing on 0.7350 and 0.7425 resistances next
Weekly: Tone improving while 0.7150 support holds below
Support 1: 0.7140/50
Support2: 0.7070/80
Resistance1: 0.7275/85
Resistance2: 0.7345/55

Overbought (daily) readings and the presence of resistance extending toward 0.7425/35 may slow further gains initially but trend confidence levels are nonetheless also still rising as well. On this basis re-emergent NZD weakness should continue to prove corrective with bearish potential limited by support beginning at 0.7225 then 0.7150 areas. Otherwise -looking further ahead- once the market has digested its recent/sharp advances an extension beyond 0.7500 is anticipated as well (targeting 0.7575/0.7650 next).

NZD/AUD
Last Price: 0.9138
Daily: /Shallow NZD ascending sequence remains in force
Weekly: Breach of 0.9250 looks necessary to confirm base
Support 1: 0.9040/50
Support2: 0.8975/85
Resistance1: 0.9240/50
Resistance2: 0.9315/25

Despite several upside failures above 0.9200 over recent weeks NZD prices here are still operating with a gradually improving pattern and further gains would not thus surprise going forward. Studies argue an extension beyond 0.9250 probably remains necessary to confirm previous activity as accumulative but once seen enough compression already exists to enable a subsequent push to 0.9400 if not 0.9475. In the meantime dips have demand beginning at 0.9050 and only below 0.8975 turns this picture negative instead.

NZD/EUR
Last Price: 0.5970
Daily: /NZD values still trying to re-accumulate around 0.5900
Weekly: /Break from 0.5750-0.6100 range will determine bias
Support 1: 0.5850/60
Support2: 0.5745/55
Resistance1: 0.6100/10
Resistance2: 0.6195/05

NZD prices here have not yet done enough on the upside to secure an intermediate bottom but several obvious attempts to resume prior weakness have also been spurned at well. Studies argue a fresh sell-off through 0.5850 local support could provoke another test of key 0.5750 demand over coming sessions but without any clear loss of this latter level bearish risk remains limited in broader terms. Meanwhile provided 0.6100/10 resistance is hurdled first/next a base can still form here -capable of 0.6200/0.6300 instead.

NZD/JPY
Last Price: 81.06
Daily: NZD positive tone with local resistances still in focus
Weekly: Market still ranging (re-basing) below 84.00 for now
Support 1: 79.40/50
Support2: 77.95/05
Resistance1: 82.50/60
Resistance2: 84.00/10

An intermediate NZD range persists here with values still pivoting the psychological 80.00 level at present. As elsewhere an argument can be made for current/recent choppy consolidation being accumulative in broader terms. However additional evidence (in this instance a breach of 84.00) will be required to confirm this basing scenario. NB: once seen 90.00+ levels are then reachable as well. In the meantime regular set-backs cannot be ruled out though decent demand is also now building immediately beneath 80.00.

NZD/GBP
Last Price: 0.5265
Daily: /Buying interest dissipating above 0.5350 for now
Weekly: /Broad NZD downtrend effectively on hold initially
Support 1: 0.5215/25
Support2: 0.5165/75
Resistance1: 0.5375/85
Resistance2: 0.5450/60

The structure of recent NZD strength here looks impulsive which implies broader downtrends are probably still on hold for now. Provided any secondary sell-off is contained ahead of 0.5000 in coming sessions bearish scope thus appears limited again from a short term perspective at least. More substantial supply awaits beyond the psychological 0.5500 level but values might well track sideways between these (effective range) parameters over coming weeks before intermediate downtrends are able to resume again.

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