NZD/USD is starting to struggle a little topside, but in saying that, it continues to find support ahead of the 21-DMA. Initial resistance is now noted at Friday’s high but bulls now need a close above $0.8695 to reconfirm 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.
After having recently found support ahead of the 21-DMA, the AUD/NZD dipped below Thursday before recovering lost ground and closing back above. Bears look for a close below the NZ$1.0792 support to confirm a break of the 21-DMA and see immediate focus shift to the NZ$1.0728-57 region where the 55 & 100-DMA’s are noted. Bulls need the NZ$1.0792-1.0813 region to support to maintain a base to target the NZ$1.0908-47 region.
The close below the 21-DMA Thursday and Friday adds weight to the bearish case that has also seen the pair dip below the rising daily channel base. Bulls need a close above the Y95.80 level to confirm an easing of bearish pressure and see focus return to 2014 highs. Bears now initially target the Y94.28-48 region while Y95.80 caps with a bearish cross on the daily Slow Stochastic study noted Friday.
The move lower continued Thursday 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 the A$1.4750 May 13 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$1.4966-21 region where the 55-DMA is located.
The Krw1030.1 initial resistance level confirmed its significance last week 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 fails to capitalise on spikes above the 21-DMA. Bulls need to see a close above the Sgd1.2541 May 16 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 Sgd1.2541 is needed for them to have any real impact