NZD/USD trades in two channels

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 36% 36% 0.00%
Shorts 64% 64% 0.00%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Buy
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Buy Sell
Alligator (13; 8; 5) Sell Sell Buy
SAR (0.02; 0.2) Buy Buy Sell
Aggregate

The New Zealand Dollar was able to gain strength against the Greenback on Thursday and reverse circa 0.7190. This move was followed by a surge that surpassed the weekly PP and the 200-, 55– and 100-hour SMAs without any hindrance. 

Following weak data on US Retail Sales at 1230GMT today, the rate swiftly shot up to the upper channel boundary and the 38.2% Fibo, but eventually settled at the monthly PP. The pair's movement during the last three weeks reveals a more senior channel up. 

As the pair already tested the bottom channel boundary on September 14, the current upside movement might mark the formation of a new up-trend. Nevertheless, it is expected that the rate might still respect the junior channel in the short-term and therefore re-test the 100-hour SMA by mid-Monday.

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