The daily Slow Stochastic study continues to threaten a bearish cross from O/B levels which may start to weigh with bears initially looking for a dip back to the 21-DMA and a close below needed to hint at a deeper correction that targets the Feb 20 low. Above $0.8544 is needed to kick start bullish momentum while a close below $0.8432 is needed to place the up trend in doubt and see immediate focus shift to retests of the 21-DMA.
After stalling ahead of the 55-DMA (NZ$1.0759) on Friday with the 21-DMA noted just above the pair has continued the move lower this week, breaking through the base of the falling daily channel. Bears are now targeting a retest of the 2014 low with potential for a test of the 2005 low beneath. Bulls need to see a close above the Mar 10 high to ease bearish pressure and a close above the 21-DMA to shift focus higher.
Following last week’s failure ahead of the key Y94.59 Nov monthly high the cracks in the uptrend have significantly widened with immediate focus having shifted to a retest of the 21 and 200-DMA’s. A close below the 200-DMA ends bullish aspirations and sees the immediate focus shift to retests of Y91.35 with bears then looking for a continuation lower that targets the 2014 low at Y88.27. Bulls need a close above Y92.91 to ease bearish pressure
With the 55-DMA having supported on Monday and Tuesday bulls have taken comfort in the break higher with immediate focus shifting to the A$1.5496 Mar 3 high. Bulls are targeting a break higher that sees focus shift to the A$1.5668-1.5831 region with bears looking for a close below the 55-DMA to ease bullish pressure. Overall a close back below A$1.5166 is needed to confirm a break of the 21-DMA and rising daily trend line and see the 2014 low targeted