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
Wall Street
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
More View more
Real Time News
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here:
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here:
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here:
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here:
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here:
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here:
NZD/USD Clears Monthly Opening Range to Push RSI Into Overbought Zone

NZD/USD Clears Monthly Opening Range to Push RSI Into Overbought Zone

David Song, Strategist

New Zealand Dollar Talking Points

NZD/USDclears the opening range for December as the exchange rate extends the advance from the monthly low (0.7006), and the recent weakness in the exchange rate appears to have been an exhaustion in the bullish trend rather than a change in market behavior as the Relative Strength Index (RSI) pushes back into overbought territory.


NZD/USD Clears Monthly Opening Range to Push RSI Into Overbought Zone

NZD/USD consolidates after trading to a fresh yearly high (0.7120) as the US Dollar rebounds on the back of waning investor confidence, and swings in risk appetite may continue to sway the exchange rate as the Federal Reserve’s balance sheet approaches the record high seen in November.

It remains to be seen if the Federal Open Market Committee (FOMC) will take additional steps to support the US economy as the European Central Bank (ECB)expands the pandemic emergency purchase programme (PEPP) by EUR 500B ahead of 2021, but the ongoing response to the COVID-19 pandemic are likely to keep key market trends in place as monetary authorities rely on their non-standard measures to achieve their policy targets.

In turn, the US Dollar may continue to show an inverse relationship with investor confidence ahead of the Fed interest rate decision on December 16, and the crowding behavior in retail sentiment also looks poised to persist as the crowding behavior from earlier this year resurfaces.

Image of IG Client Sentiement for NZD/USD rate

The IG Client Sentiment report shows 29.34% of traders are net-long with the ratio of traders short to long at 2.41 to 1. The number of traders net-long is 32.47% higher than yesterday and 22.38% higher from last week, while the number of traders net-short is 0.98% higher than yesterday and 2.67% lower from last week.

The rise in net-long position comes as NZD/USD trades to a fresh yearly high (0.7120), while the decline in net-short interest has helped to alleviate the tilt in retail sentiment as only 25.44% of traders were net-long the pair during the previous week.

With that said, the recent weakness in NZD/USD appears to have been an exhaustion in the bullish trend rather than a change in market behavior as it clears the opening range for December, and the exchange rate may continue to trade to fresh yearly highs throughout the remainder of the month as the Relative Strength Index (RSI) pushes back into overbought territory.

NZD/USD Rate Daily Chart

Image of NZD/USD rate daily chart

Source: Trading View

  • Keep in mind, NZD/USD cleared the February high (0.6503) in June as the Relative Strength Index (RSI) broke above 70 for the first time in 2020, with the exchange rate taking out the January high (0.6733) in September following the close above the Fibonacci overlap around 0.6710 (61.8% expansion) to 0.6740 (23.6% expansion).
  • However, lack of momentum to close above the 0.6790 (50% expansion) region pushed NZD/USD below the Fibonacci overlap around 0.6600 (38.2% expansion) to 0.6630 (78.6% expansion), with the RSI slipping to its lowest level since April during the same period.
  • NZD/USD appeared to be on track to test the August low (0.6489) as the RSI established a downward trend in September, but the decline from the September high (0.6798)turned out to be an exhaustion in the bullish trend rather than a change in NZD/USD behavior as the 0.6490 (50% expansion) to 0.6520 (100% expansion) region provided support.
  • The RSI highlighted a similar dynamic as it reverses course ahead of oversold territory to break out of the bearish formation from September, with the oscillator establishing an upward trend in October.
  • Lack of momentum to test the August low (0.6489) pushed NZD/USD back above the 0.6600 (38.2% expansion) to 0.6630 (78.6% expansion) region, with the exchange rate clearing the September high (0.6798) in November, which pushed the RSI into overbought territory for the first time since June.
  • NZD/USD also cleared the June 2018 high (0.7060) as it climbed to a fresh yearly highs in December, and the advance from the monthly low (0.7006) may gather pace as the RSI pushes back above 70.
  • Still need a close above the Fibonacci overlap around 0.7070 (61.8% expansion) to 0.7110 (38.2% expansion) to open up the 0.7260 (78.6% expansion) region, with the next area of interest coming in around 0.7330 (38.2% retracement) to 0.7350 (23.6% expansion).

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong

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