The current political unrest and declining oil prices have played a major role in then further devaluation of the naira. Technical analysis already predicted these declines before the underlying fundamental issues such as insurgency, declining oil prices and political unrest actually took place.
Going forward this Naira section offers you weekly reports on the technical price action of the Naira against other currencies. You may set level alerts to be received via email or sms once your predefined levels are set.
Example: Set an alert for when the Naira hits N200 versus the American dollar.
Note for laymen: Upward movement indicates dollar strength against Naira weakness and vice versa.
Monthly
The USDNGN is over bought on the Monthly chart trading at N194 to $1.
Weekly
The same picture is painted here.
5Hourly
A Head and Shoulder has formed and failed in the 186-192 area with a lot of strength in the background. Should price touch 194.615 I fully expect momentum to push price to N200 – $1. Should this pattern fail we should see a consolidation that could push prices down to the N185 -$1 region.
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The US dollar has broken above N194.615 and will probably touch N200 for $1. The risk area/area of possible consolidation or reversal lies between N196.00 – N186.00. Price will reveal itself over the next few days.
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As predicted the Naira is now trading at N200 to $1 off an up thrust at support at the 195 area: We will wait for price action to expose the market’s next thrust at support or resistance, for now the bulls are firmly in charge