NZDUSD – Perfect Example of Double Top Pattern13 September, 2016 by Aayush Jindal in Market Analysis, NZDUSD, Technical Analysis
NZDUSD – Perfect Example of Double Top Pattern
- New Zealand dollar weakened a lot recently against the US Dollar and moved below 0.7400.
- There was a double top pattern formed on the hourly chart of the NZDUSD pair, which ignited a downside move.
- Today in New Zealand, the Food Price Index (FPI) released by the Statistics New Zealand posted a rise of 1.3% in August 2016.
- Today in the US, the NFIB Business Optimism Index will be released today, which may impact the US Dollar.
NZDUSD Pair Technical Analysis
The New Zealand dollar after trading close to the 0.7500 level against the US Dollar found sellers and traded down. There was a perfect double top pattern in NZDUSD, which pushed the pair down.
There was a bullish trend line formed on the hourly chart of the NZDUSD pair, which was also broken during the downside move. The pair also moved below the 100 and 200 hourly simple moving average, which is a bearish sign.
The pair may continue to face sellers in the near term, as the market sentiment is currently bearish.
New Zealand Food Price Index
Today during the Asian session, the New Zealand Food Price Index (FPI), which measures price changes of food bought by households was released by the Statistics New Zealand.
The forecast was slated for a decline in August 2016 2016, compared with the previous month in which there was a decline of 0.2%. The result was a bit positive, as there was a rise of 1.2%. The report added that “Seasonally adjusted vegetable prices rose 2.1 percent as winter price rises were higher than usual this month. Unadjusted vegetable prices rose 8.9 percent, influenced by higher prices for tomatoes (up 41 percent), lettuce (up 7.8 percent), and cabbage (up 57 percent).”
The result failed to help the NZD, which is a sign of more losses in the near term in the NZDUSD pair.
National Australia Bank’s Business Confidence
In Australia, the National Australia Bank’s Business Confidence, which is a survey of the current business condition and indicates the performance of the overall Australian economy in a short-term view was reported. It posted an increase from the last reading of 4 to 6 in August 2016.