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
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
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
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
Gold
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
Oil - US Crude
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
Bitcoin
Bullish
More View more
Real Time News
  • Thai Finance Ministry says #coronarvirus may cut about 400k visitors -BBG $USDTHB
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.46%, while traders in US 500 are at opposite extremes with 71.30%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/t7OBrrCW1J
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.12% 🇯🇵JPY: 0.00% 🇬🇧GBP: -0.05% 🇪🇺EUR: -0.08% 🇨🇭CHF: -0.10% 🇳🇿NZD: -0.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/haGVeVyQyA
  • The $USD rose as the Singapore Dollar, Malaysian Ringgit and Philippine Peso fell on coronavirus fears. What is the technical outlook for USD/IDR, USD/SGD, USD/MYR and USD/PHP? Get your market update from @ddubrovskyFX here: https://t.co/G3GmyOe4IT https://t.co/hXubgKzqfp
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.35% US 500: 0.35% Germany 30: 0.31% France 40: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/VHUHZF1Cyz
  • 🇯🇵 JPY Consumer Confidence Index (JAN), Actual: 39.1 Expected: 39.5 Previous: 39.1 https://www.dailyfx.com/economic-calendar#2020-01-29
  • Heads Up:🇯🇵 JPY Consumer Confidence Index (JAN) due at 05:00 GMT (15min), Actual: N/A Expected: 39.5 Previous: 39.1 https://www.dailyfx.com/economic-calendar#2020-01-29
  • The #Euro has broken four-month support guiding a recovery against the US Dollar to suggest that the long-term downtrend has been re-engaged. Get your EUR/USD market update from @IlyaSpivak here: https://t.co/FHiGQZ6zvV https://t.co/0ulmLWaZxK
  • The US Dollar may be on the verge of upside breakouts against #ASEAN currencies such as the Singapore Dollar and Malaysian Ringgit after Wuhan virus fears boosted $USDSGD and $USDMYR #SGD #USD - https://www.dailyfx.com/forex/technical/article/special_report/2020/01/29/Dollar-Technical-Outlook-May-Turn-Bullish-as-USDSGD-USDMYR-Rise.html?CHID=9&QPID=917702 https://t.co/1M1GTIo79r
  • $AUDJPY technical positioning hints prices may be on cusp of turning lower after a late-2019 bounce, recoupling with a dovish RBA policy outlook. Get your market update from @IlyaSpivak here: https://t.co/z84Y0V0ZtH https://t.co/e30wIlAkbF
New Zealand Dollar Forecast: Is NZD/USD Due for a Reversal Lower?

New Zealand Dollar Forecast: Is NZD/USD Due for a Reversal Lower?

2020-01-02 21:30:00
Peter Hanks, Junior Analyst
Share:

New Zealand Dollar Forecast:

New Zealand Dollar Forecast: Is NZD/USD Due for a Reversal Lower?

After surging throughout December, NZD/USD has paused at long-term trendline resistance around 0.6745. Trading in overbought territory for the majority of December, it is of little surprise the Kiwi is looking to take a breather now that it has encountered a rather formidable trendline. Originating from mid-2014, the descending trendline has kept price contained ever since and the level conveniently coincides with a nearby Fibonacci level – bolstering the zone’s influence.

NZD/USD Price Chart: Daily Time Frame (December 2018 – January 2020) (Chart 1)

NZD/USD price chart

The technical barriers, coupled with a modest retreat in risk appetite, helped spark a NZD/USD pullback that could see the pair extend lower as it looks to consolidate last month’s gains. While it is currently unclear if NZD/USD will continue higher in the longer-term, the release of the FOMC’s December meeting minutes on Friday could dictate the shorter-term direction and compound recent Kiwi weakness.

With that in mind, an initial area of support in the event of a deeper reversal exists around the 0.6580 to 0.6550 area which has spurred price indecision in the past. Given the current spot price, the area could look to provide a base for a subsequent retest of overhead resistance after the pair has consolidated further.

Economic Calendar

On the other hand, a dovish takeaway from the FOMC’s meeting minutes could see NZD immediately retest resistance, likely sending NZD/USD back into overbought territory. If the combined technical levels fail to keep price contained at the 0.6745-mark, secondary resistance may take shape at the 0.6790 level which coincides with the pair’s swing high in July.

NZD/USD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 14% -3% 5%
Weekly -4% -3% -4%
What does it mean for price action?
Get My Guide

Still, a move beyond the long-term descending trendline may signal a broader shift in the underlying fundamental landscape and open the door to further NZD/USD gains. In the meantime, however, price action will likely cool until the FOMC minutes are released and the market can run with the implications. For updates on NZD/USD after the minutes are released, follow @PeterHanksFX on Twitter.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more:Australian Dollar Forecast: AUD/USD Surges, but Rally Looks Overdone

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

DISCLOSURES

News & Analysis at your fingertips.