News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Indeed... because my report was posted many hours ago https://t.co/SKzJUGRG9h
  • And a great guest you were too. Thank you! https://t.co/noZQNreeEF
  • USD/CAD trades to a fresh monthly high (1.3390) as the US Dollar appreciates on the back of waning risk appetite. Get your market update from @DavidJSong here:https://t.co/1su6hczNz3 https://t.co/9PqqeS7Seb
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.45% Silver: 0.15% Gold: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ZbuJCtwSLe
  • Crude Oil Forecast: WTI Crude Oil Sinks to Fresh Four-Month-Lows https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/10/29/Crude-Oil-Price-Forecast-WTI-Crude-Oil-Sinks-to-Fresh-Four-Month-Lows.html https://t.co/VZkDC7TZ3t
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.31%, while traders in NZD/USD are at opposite extremes with 68.35%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/InT3aJBPqT
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 1.46% Wall Street: 0.86% FTSE 100: 0.67% France 40: 0.62% Germany 30: 0.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/gQnHmoLx2Q
  • Commodities Update: NYM WTI Crude 36.22 (-3.13%), ICE Brent Crude 37.79 (-3.35%), NYM NYH Gasoline 104.69 (-3.19%). [delayed]
  • #Gold Price Forecast: $XAUUSD Pre-Election Breakdown to Monthly Lows - https://t.co/qfEko0woN7 https://t.co/vvWdrxOQMP
  • ECB sources - policymakers favoured more bond purchases, others TLTRO and others a mix of both $EUR
Kiwi Dollar Set to Fly Against Greenback

Kiwi Dollar Set to Fly Against Greenback

2017-05-24 15:58:00
Martin Essex, MSTA, Analyst
Share:

- Check out the DailyFX Economic Calendar and see what live coverage of key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

The New Zealand Dollar has this week broken to the upside from a triangle pattern on the daily NZD/USD chart, suggesting further upside in the days ahead. As the chart below shows, trading for most of this year has been characterized by lower highs and lower lows, and the breakout will be significant if the pair can break through the 100-day moving average – the red line on the chart – which has provided resistance for the past couple of days.

Moreover, the relative strength indicator (RSI) has yet to move into overbought territory.

Chart: NZD/USD Daily Timeframe (January to May 24, 2017)

Kiwi Dollar Set to Fly Against Greenback

Chart by IG

If the pair does break higher, the first target will be the April highs at 0.7054, followed by the March 21 high at 0.7087 and then the March 1 high at 0.7146. On the downside, support from the 50-day moving average comes in at 0.6955 but the important level to watch is the previous downward-sloping resistance line from the February high. Currently at 0.6913, that would be a sensible point at which to place a stop.

Note too that the latest IG Client Sentiment data also point to a climb in the pair.

Kiwi Dollar Set to Fly Against Greenback

Retail trader data show 48.6% of traders are net-long with the ratio of traders short to long at 1.06 to 1. The number of traders net-long is 21.0% lower than yesterday and 17.3% lower from last week, while the number of traders net-short is 19.1% higher than yesterday and 7.4% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests NZDUSD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger NZDUSD-bullish contrarian trading bias.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at martin.essex@ig.com

Follow Martin on Twitter @MartinSEssex

If you’re looking for more trading ideas, check out our Trading Guides; they’re free and updated for the second quarter of 2017

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

DISCLOSURES