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New Zealand Tests Short Term Channel Resistance
Written by article default Thursday, 07 October 2010 10:35
The NZDUSD continues to make fresh 2010 highs. A break above 7640 seems a given at this point but the extreme trend readings in the other USD crosses suggest that a USD rally, if even only corrective, is overdue. There is the specter of a year long head and shoulders continuation pattern. These patterns typically exhibit symmetry. As such, a decline towards 6805 could result in the formation of the second right shoulder (left side has 2 shoulders). RSI has also failed to take out its recent high, which leaves a slight divergence with price.
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