New Zealand dollar continues to struggle against Canadian dollar
The New Zealand dollar initially tried to rally during the trading session on Friday, but continues to struggle at the 50 day EMA, as we have formed yet another long wick to the upside. The 0.8425 region continues offer quite a bit of resistance as well, and it makes sense considering that the New Zealand dollar is so highly levered to China that it would continue to struggle against a North American currency, not the least of which being the Canadian dollar as it is so highly levered to crude oil.
The MACD continues to shrink a bit, perhaps suggesting that momentum is waning a bit. We are in the longer-term downtrend, so if we can break down below the 0.8350 level I anticipate that it will continue lower, perhaps down to the recent lows near the 0.8225 handle. That being said, if the market was to break above the 50 day EMA on a daily close, especially near the 0.8450 level, then you concert to talk about a countertrend move that could be looking to change the entire situation. Obviously, we need good news coming out of either the US/China trade talks, or New Zealand itself to make that happen.
One thing is for sure, there are plenty of sellers at the top of this range we have been in the week, so it does suggest that obviously there is quite a bit of selling pressure out there and that nothing has truly changed over the last couple of days to make people think of buying. It doesn’t mean that we are going to melt down, but it seems as if we are going to continue to grind lower, but we need a little bit of a push to make that happen. Fading short-term rallies also has worked quite well.
The MACD continues to shrink a bit, perhaps suggesting that momentum is waning a bit. We are in the longer-term downtrend, so if we can break down below the 0.8350 level I anticipate that it will continue lower, perhaps down to the recent lows near the 0.8225 handle. That being said, if the market was to break above the 50 day EMA on a daily close, especially near the 0.8450 level, then you concert to talk about a countertrend move that could be looking to change the entire situation. Obviously, we need good news coming out of either the US/China trade talks, or New Zealand itself to make that happen.
One thing is for sure, there are plenty of sellers at the top of this range we have been in the week, so it does suggest that obviously there is quite a bit of selling pressure out there and that nothing has truly changed over the last couple of days to make people think of buying. It doesn’t mean that we are going to melt down, but it seems as if we are going to continue to grind lower, but we need a little bit of a push to make that happen. Fading short-term rallies also has worked quite well.