FX.co ★ NZD/USD Ichimoku technical analysis for August 4, 2011

H4

After the price entered the 4-hour Ichimoku Cloud there was a slight stagnation on the New Zealand dollar market – yesterday the price was moving sideways above the 0.8600 level.
However, not only did the short-term downtrend remain, but it also strengthened according to the Tenkan-sen direction (3). Thus, the Rotation line (3) headed to the downside, therefore increasing the negative influence of the Dead Cross (5).
This is why today we can expect further decline and a new local high is likely to form in the nearest time. The lower limit of the Kumo is likely to be tested as well.

H1

The result of yesterday’s NZD sideways movement was trading in a quite narrow price range above 0.8600, just as expected. As a result, after forming a pretty weak Gold Cross (5) short-term Tenkan-sen and Kijun-sen directed to a horizontal trend where they have been trading by now.
Besides, the Senkou Span A and B are indicating a flat.
However, the major downtrend remains and we can expect further decline after the sideways movement is over.