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
Mixed
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
GBP/USD
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
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
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
Mixed
More View more
Real Time News
  • #Silver is a precious metal commodity that investors use as an inflation hedge and safe-haven asset. Find out what are some strategies and tips to trade silver here: https://t.co/k4tVcFuwxW #CommoditieswithDailyFX https://t.co/zXCSmH2HLX
  • Markets are trying to maintain a bullish tilt as a new week rolls around, a look ahead at the charts of the #Dow, #DAX, and #FTSE. Get your technical analysis on major world indices from @PaulRobinsonFX here: https://t.co/bYjRDvQsdM https://t.co/mbg0rUbv3K
  • Trade conflict is clearly awful for the broad world economy, but some countries are already benefiting from it. More stand to do so. Spotting them early could be profitable. Get your update on the #tradewar from @DavidCottleFX here: https://t.co/og0VAPAqwm https://t.co/xB8hYUj4OA
  • #Gold prices may suffer if better-than-expected US economic data and progress on US-China trade negotiations cool 2020 Fed rate cuts and alleviate demand for anti-fiat hedges. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/3ula2sUpqL $gld https://t.co/2iZwxcm3wP
  • What's the difference between leading and lagging indicators? Find out from @RichardSnowFX here:https://t.co/vGx8HCagF5 https://t.co/KCZ48rDnhy
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/tTXcw1b7Tp
  • RT @dlacalle_IA: ... “Temporary” Fed plans to double repo market intervention to avoid cash crunch https://t.co/j6N3Qmo6HX
  • RT @HeathaT: The @USTradeRep "fact sheet" on the US-China deal is pretty light on details, but if you're looking for something written down…
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/1H5UASpHb7
  • What is the best time to trade #forex? Find out: https://t.co/M9R46rmPUK #tradingstyle https://t.co/k6z9p9v4nY
NZD/USD Price Outlook: Pending Bull Flag Breakout in Kiwi

NZD/USD Price Outlook: Pending Bull Flag Breakout in Kiwi

2018-11-26 20:00:00
Michael Boutros, Technical Strategist
Share:

The New Zealand Dollar is pulled back from fresh four-month highs against the US Dollar last week with price now targeting areas of interest for near-term price support. These are the updated targets and invalidation levels that matter on the NZD/USD charts heading into the close of the month. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and more.

New to Forex Trading? Get started with this Free Beginners Guide

NZD/USD Daily Price Chart

NZD/USD Daily Price Chart

Technical Outlook: In my previous NZD/USD Price Outlook we noted that, “Key daily support rests at the 6700/15 zone (tested yesterday) with a breach above 6850 needed to fuel the next leg higher in price.Kiwi briefly registered a high a 6883 before turning lower last week and while the risk remains for a deeper pullback, we’re looking for support into / ahead of the highlighted trendline confluence just above the 6700-handle. Key resistance stands at the upper parallel / 200-day moving average at ~6874 – a breach / close above is needed to fuel the next leg higher targeting the 50% retracement of the yearly range at 6930.

Learn how to Trade with Confidence in our Free Trading Guide

NZD/USD 240min Price Chart

Please add a description for the image.

Notes: A closer look at price action shows Kiwi trading within the confines of a descending channel formation (possible bull flag formation) extending off the highs. Price turned just ahead of the 100% extension at 6752 – so was that it? The jury is still out and while the broader outlook remains tilted to the topside, the threat remains for another test of this level if not deeper into the highlighted slope confluence at ~6725 or the 6700/08 zone – both levels of interest for possible price exhaustion / long-entries IF reached. Initial resistance stands at 6819 with a breach above 6874 needed to mark resumption of the broader uptrend.

Even the most seasoned traders need a reminder every now and then- Avoid these Mistakes in your trading

Bottom line: Kiwi has pulled back from uptrend resistance and IF this is just a correction, price should establish a low ahead of 6700. From a trading standpoint, looking for a drop towards the median-line OR a breach and retest of channel resistance as support for long-entries. A downside break below the figure would invalidate the reversal play with such a scenario exposing 6654 and the 61.8% retracement at 6600.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

NZD/USD Trader Sentiment

Please add a description for the image.
  • A summary of IG Client Sentiment shows traders are net-short NZD/USD - the ratio stands at -1.19 (45.7% of traders are long) – weak bullishreading
  • Long positions are0.4% higher than yesterday and 3.5% lower from last week
  • Short positions are 12.9% higher than yesterday and 22.3% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests NZD/USD 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 NZD/USD-bullish contrarian trading bias.

See how shifts in NZD/USD retail positioning are impacting trend- Learn more about sentiment!

---

Relevant NZD/USD Data Releases

NZD/USD Economic Calendar

Economic Calendar - latest economic developments and upcoming event risk. Learn more about how we Trade the News in our Free Guide!

Active Trade Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.