Never miss a story from Kristian Kerr

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Kristian Kerr

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points

  • Kiwi stuck between two trendlines
  • Possible double top setting up on daily chart

Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.

A quick glance at the NZD/USD daily chart will reveal that the exchange rate has been beholden to a set of trendlines over the past couple of weeks. On the upside, the line connecting the October and January highs is currently at .7700 and has proven to be strong resistance over the past couple of weeks on a closing basis. The lower trendline now just under .7600 connects the March and mid-April lows and has been a solid area of support these past few days. With these lines getting closer to each other each trading day we can only assume that a directional break of some sort is coming. Wednesday’s reversal occurred during a cycle turn window and the price action over the past few weeks has set up a pretty clear potential double top. All things considered this would seem to favor a downside resolution. A daily close under .7590 or a break of the double top trigger at .7540 should confirm that a move lower of some importance is underway. A daily settlement over .7700, on the other hand, would set the stage for a more important push higher in the Kiwi.

To receive other reports from this author via e-mail, sign up to Kristian’s e-mail distribution list via this link.

NZD/USD Daily Chart: May 1, 2015

Consolidation or Breakdown in NZD/USD?

Charts Created using Marketscope – Prepared by Kristian Kerr

Key Event Risk in the Week Ahead:

Consolidation or Breakdown in NZD/USD?


Resistance: .7700 (Trendline), .7740 (April high)

Support: .7540 (Late April low) .7520 (Fibonacci)

Strategy: Sell NZD/USD

Entry: Sell NZD/USD on a weekly close below .7590

Stop: Daily close above .7700

Target: Open

--- Written by Kristian Kerr, Senior Currency Strategist for

To contact Kristian, e-mail Follow me on Twitter at@KKerrFX.