New Zealand Dollar Technical Outlook vs Japanese Yen & British Pound
New Zealand Dollar, Japanese Yen, British Pound, NZD/JPY, NZD/GBP – TALKING POINTS
- NZD/JPY surging as pair heads straight towards key inflection range
- GBP/NZD selling pressure may swell as pair flirts with crucial floor
- AUD/NZD retesting 5-year resistance – will there finally be a break?
NZD/JPY is up over 11 percent after bottoming out at a multi-year low at 61.974. In the past day, the pair surged over two percent and is now within touching distance of a key former support-turned-resistance range between 69.897 and 70.030. If that zone is cleared, NZD/JPY may aim to shatter resistance at 71. 247. If the ceiling here is broken with follow-through, it could inspire additional bullish price action.
NZD/JPY – Daily Chart
NZD/JPY chart created using TradingView
GBP/NZD has recently broken below a multi-month uptrend and has subsequently shattered two support levels along the path of its descent. If selling pressure continues, GBP/NZD may encounter some downside friction at 1.9600. Invalidating support there could open the door to testing a floor at 1.9405 – breaking that could exacerbate the pair’s decline.
GBP/NZD – Daily Chart
GBP/NZD chart created using TradingView
AUD/NZD may be on the verge of breaking trend-defining resistance that has kept the pair under its shadow since August 2015. Over the past five years, every retest of this descending slope of depreciation has been met with capitulation and a selloff. If upside momentum continues to push AUD/NZD higher, a break above descending resistance with confirmation could inspire additional buyers to enter the market.
AUD/NZD – Weekly Chart
AUD/NZD chart created using TradingView
--- Written by Dimitri Zabelin, Currency Analyst for DailyFX.com
To contact Dimitri, use the comments section below or @ZabelinDimitriTwitter
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.