Friday, May 4, 2012

NZDUSD & DJIA Analysis


As discussed two days ago, the kiwi went out the trading range by breaking the 0.81 level. The break is confirmed by the weekly RSI that broke the 50 level. Looking on the weekly chart, there is also a clear brake of the 21 week MA. The move came with the release of the unemployment rate. Next support area is around 0.7965, at 50% Fibonacci retracement of the last up move from 0.7460 – 0.8470. The theoretical target is around 0.7885.




The Dow Jones Index is fighting the 13220 level for the fourth time and is failing to close above that level. The fact that other US major indexes like the Nasdaq and S&P 500 are traded well below  recent high is a good signal for a short opportunity based on correlation. The entry for a trade could be below yesterday’s low, while protective SL should be place above recent daily high around 13290. First support is at 13070, then 12985 and of course 12750 area.


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