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.

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
Subscribe
Please try again
More View more
New Zealand Dollar Forecast: NZD/USD Establishes Ascending Channel

New Zealand Dollar Forecast: NZD/USD Establishes Ascending Channel

David Song, Strategist

New Zealand Dollar Forecast: NZD/USD Establishes Ascending Channel

Advertisement

NZD/USD carves a bullish outside day candle even as the Russia-Ukraine crisis sways investor confidence, and the exchange rate may stage further attempts to test the January high (0.6891) as an upward trending channel takes shape.

The bullish trend emerged as NZD/USD registered the monthly low (0.6566) on February 1, and it remains to be seen if a similar dynamic will materialize in March as the exchange rate pushes back above the former support zone around 0.6690 (38.2% expansion) to 0.6710 (61.8% expansion).

NZD/USD Rate Daily Chart

Image of NZD/USD rate daily chart

Source: Trading View

NZD/USD appears to be on track to test the February high (0.6809) as it bounces back from channel support, with the break/close above the former support zone around 0.6690 (38.2% expansion) to 0.6710 (61.8% expansion) pushing the exchange rate up against the Fibonacci overlap around 0.6770 (23.6% expansion) to 0.6810 (38.2% expansion)

A close above the overlap around 0.6770 (23.6% expansion) to 0.6810 (38.2% expansion) brings the 0.6870 (50% retracement) region on the radar, with a break above the January high (0.6891) opening up the 0.6940 (50% expansion) to 0.6990 (23.6% retracement) area.

However, lack of momentum to close above the overlap around 0.6770 (23.6% expansion) to 0.6810 (38.2% expansion) may keep NZD/USD within the February range, with a move below the 0.6690 (38.2% expansion) to 0.6710 (61.8% expansion) area bringing the 0.6630 (50% expansion) to 0.6640 (23.6% expansion) region back on the radar.

--- 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.

DISCLOSURES