EUR/NZD Technical Analysis based on Ichimoku Technique for October 21, 2011 2011-10-21
The New Zealand dollar is approaching to the positive area. Yesterday the bulls failed another chance to break a resistance level of the upper bound, and retreated. The Ichimoku Cloud in a 4-hour timeframe. The price has finally returned to the Etalon line (4) and found there a support; Senkou Span A was broken by the day’s end. Therefore, a short-term upward trend continued, as the Tenkan-Sen and Kijun-Sen kept a “golden cross” (5), while the Chinkou Span broke the chart upwards and added to bullishness.
H1 Positive signs are strengthening in a 1-hour timeframe as well, after yesterday’s bearish attempts to change the price downwards, which resulted in a break of the Ichimoku Cloud. However, the bulls managed to turn the price to the positive area and fixed it above the Kumo. The Tenkan-Sen and Kijun-Sen has immediately formed the “golden cross” (5) and supported bullishness. Currently, they also tend to further upward movement. Moreover, the long-term upward trend is supported by the bullish Ichimoku Cloud. Therefore, the price may break a 1.7400 level today. In case it breaks the level, it may continue upward movement up to 1.7550.