We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bearish
Gold
Bearish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bullish
More View more
Real Time News
  • #NOK, #SEK and #AUD are expected to be the most-active #G10 FX against the US Dollar with one-week implied volatility at 10.05, 9.05 and 8.68 respectively -BBG [delayed]
  • The #ASX 200 stock index hit record highs this year but those days seem unlikely to return anytime soon as even equity buckles before the #coronavirus outbreak. Get your market update from @DavidCottleFX here: https://t.co/HlZhPBbnIn https://t.co/UbCNbaPtX4
  • LIVE NOW: In this session, Currency Analyst @ddubrovskyFX discusses traders' positioning as a key element of market analysis to determine the prevailing and future price trends. https://www.dailyfx.com/webinars/998956395
  • South Korea #coronavirus cases top 1,000. For perspective, it was 51 a week ago.
  • Markets after realizing they may have to contend with reignited US-China trade tensions, #coronavirus and a neutral Fed all at the same time: https://t.co/PlC75iOY13
  • The $USD may rise against the Malaysian Ringgit after Prime Minister Mahathir Mohamad resigned. Bank of Malaysia may cut rates on #coronavirus fears with fiscal stimulus uncertain. Get your market update from @ddubrovskyFX here: https://t.co/WSx7FEf6W6 https://t.co/byzavtwAo5
  • LIVE IN 30 MIN: In this session, Currency Analyst @ddubrovskyFX discusses traders' positioning as a key element of market analysis to determine the prevailing and future price trends. https://www.dailyfx.com/webinars/998956395
  • The British Pound, #Euro and Japanese #Yen rose versus the US Dollar. #Coronavirus fears sank stocks and increased #Fed rate cut bets. The $GBPUSD technical bias still points lower #USD - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/02/26/British-Pound-Euro-Yen-Gain-as-US-Dollar-Weakens-in-Tense-Session.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/qupkKdbHms
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/1:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTDaWVC https://t.co/BlxHOemKwy
  • China is "fully expected" to meet terms outlined in "Phase 1" of the US-China trade deal despite the outbreak of the #coronavirus according to top US officials (SCMP) - First Squawk Could you imagine the pandemonium if markets had to contend with #covid19 and reignited tensions?
NZD/USD Could See Full Retracement Back to Nov Lows

NZD/USD Could See Full Retracement Back to Nov Lows

2018-05-15 05:20:00
David Cottle, Analyst
Share:

Currency Pair: Bearish NZD/USD

Expertise: Technical

Average Time Frame: Six Weeks

DailyFX Quarterly Forecasts have been updated for Q2 and are available here

The New Zealand Dollar’s downtrend against its US cousin may have become a little shallower than it used to but, but downtrend it remains and it's not likely to reverse anytime soon.

New Zealand Dollar  Vs US Dollar, Daily Chart

The US Dollar has seen a little rethink of the broad strength seen in the last three months or so but remains firmly in the ascendant. And, while the US Federal Reserve is expected to raise interest rates next month, and to do so at least once more this year, the Reserve Bank of New Zealand is rather more stuck when it comes to monetary policy.

It has recently revised its outlook for inflation and growth a bit lower, with the knock-on possibility that the Official Cash Rate will remain at its 1.75% record low for quite some time yet.

Technically NZD/USD has retraced nearly of its rise up from the lows of November last year to the peaks of February 2018.

In recent days it has slipped below the 76.4% Fibonacci retracement of that climb. It came in at 0.6934.

Now 100% retracement beckons, at 0.67794. With nothing very likely to disturb the weak NZ inflation picture in the next couple of months or so, or at least not to the extent that might force an early RBNZ rethink it seems all-but certain that NZD/USD will slip as far as that level, even if it doesn’t do so very rapidly.

New Zealand Dollar Vs US Dollar, Daily Chart with Fibonacci Retracement Levels Shown

Risks to this possibility will probably come from any signs of further US Dollar weakness, but they’re not yet likely to be sustained enough to prevent NZD/USD from hitting that target.

RESOURCES FOR TRADERS

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.