News and Analysis on NZD/USD

A weak economy and call for cutting interest rates are putting a downside pressure on the NZD/USD. 

Technically, a flouting support is at .7530 and a sustaining close below this position is possible to set off more selling force to .7445.  If this main base is broken, then look for other selling which may push the market down to a major 50% price at .7427.

On the upside, this market is likely to find some resistance on rallies to continue, particularly back to .7604 and .7622.

Though there may be a nominal rebound as the market nears to the bottom of June 23t .7445, continue to sell on rally until the main movement reverse to up.  This will not occur in anticipation of the main trend is penetrated at .7664.

Currency Pair Analysis

The main trend of NZD/USD is down.  The market is down for six days from the last top at .7664 on (06-30-08), but approaching the last bottom at .7445 on (06-13-08).

Angles

Because the market has broken below the available level so there is no up trend Gann angle support at any level. However, on the upper side, the marked closed on the weak side its angle is at .7524. The market might trade both the sides until it pulls away.

Regaining the level of .7524 could put a rally to .7594.

Chart News

Unless the market regains the level of .7664 the main trend is down.  If the main bottom of June 13 penetrates at .7445 you may come across more downside pressure. There may be a 50% support of the August 2007 to February 2008 at the range of .7445.

Look for more downside pressure if the June 13 main bottom is penetrated at .7445.

There may be some support at 50% of the August 2007 to February 2008 range at .7427.  This is a major 50% price. Additional support is at the years low of .7382 on (01.22.08).

The market is looking week but heading towards a major support area.

Ideas for Trading

With the main trend down, the safest trade is from the short-side.  Look to sell on rally back from .7574 to .7595 if given the break.  A down trending resistance comes at .7594 making a cluster key resistance from .7594 to .7595 a key resistance cluster.

Because of the value of the 50% price is at .7427 and the old main bottom at .7382, look for some profit booking in this region and some counter-trend buying.