NZD/USD not only found support ahead of the May 2 low yesterday but also found support at the 21-DMA the past two days with a relatively bullish close. Initial resistance is now noted at Wednesday’s high with bulls needing a close above to reconfirm renewed bullish focus and see the pair targeting the 2014 highs. Bears now need a close below $0.8591 to confirm a break of the 21-DMA and initially target the 55-DMA and then the $0.8501 Mar 20 low.
The correction lower and the relatively bearish close are of some concern for bulls with the pair hovering above the 21-DMA. A close below the 21-DMA confirms an easing of bullish pressure whereas a close below the NZ$1.0792 support hints at a deeper correction that targets layers of support in the NZ$1.0728-57 region where the 55 & 100-DMA’s are noted. Bulls need the 21-DMA to support to maintain a base to target the NZ$1.0908-47 region.
The spike towards the key Y96.24-49 region lacked follow through on Wednesday with the relatively bearish close seeing the pressure return to the key 21-DMA support. Bears look for a close back below the 21-DMA to end hopes of retests of the Y96.24-49 region and shift initial focus to tests of the rising daily channel base and then the 55-DMA below. While the 21-DMA supports bulls will hold out hope for further attempts higher
The move lower continued Wednesday with fresh 2014 and 6 month lows, confirming bearish pressure and immediate focus on the A$1.4476 Nov 13 2013 high now seen as support. Bulls need a close above Wednesday’s high to ease the current bearish pressure whereas a close above the 200-DMA remains needed to end bearish hopes and shift overall focus back to the A$1.4993-21 region where the 55-DMA is located.
The Krw1030.1 initial resistance level confirmed its significance on Wednesday with this level having capped the rally. Daily tech studies are correcting from O/S levels and may continue to limit downside follow through but a close above initial resistance is needed to see them come into play. A close above the Krw1034.4 level is now needed to confirm a break of the 21-DMA and see immediate focus shift higher to the Krw1042.0-1044.7 region
USD/SGD failed to capitalise on the spike above the 21-DMA with it capping the move higher Wednesday. Bulls need a close above the Sgd1.2539 May 13 high to confirm a break of the 21-DMA and shift focus to the Sgd1.2570-98 region where key moving averages are noted. It is worth noting that daily tech studies are slowly correcting from O/S levels which may limit downside follow through, but a close above Sgd1.2539 is needed to have any real impact.