Skip to Content
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. See our updated Privacy Policy here.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
The NZD/USD Retraces to Support

The NZD/USD Retraces to Support

Walker England, Forex Trading Instructor

Market Condition: NZD/USD Bullish Retracement

Target 1: 50% Retracement .6801

Target 2: 100% Retracement .6883

Invalidation: Breakout Under Support at .6719

NZDUSD 4Hour Chart

(Created using Marketscope 2.0 Charts)

The NZD/USD has fallen as much as 116 pips today to test a line of rising trendline support. This line, as depicted above, has been formed by connecting the November 18 low at .6248 with the December 9 low at .6571. By extrapolating this line, we can see the NZD/USD testing support near today’s low of .6719. If prices bounce from this point, it can allow trend traders an opportunity to enter into the market on a retracement. Potential bullish targets include .6801, which represents a 50% retracement from the December 2015 high at .6883.

In the event that prices fall through support, the trendline drawn above would be considered invalidated. This would suggest that price is set to retrace further, or even develop a new bearish trend. In this scenario, any existing bullish positions should be concluded and trend traders may begin to consider bearish opportunities when trading the NZD/USD

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

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