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.

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
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
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
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Update on #Cryptocurrencies #BITCOIN -0.55% #BITCOINCASH -0.35% #ETHEREUM -0.68% #RIPPLE -0.46% #LITECOIN +1.08%
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.28% Gold: -0.31% Silver: -3.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/E9jn9lVQkj
  • US Dollar: Ready to Rumble with High-Impact Data - EURUSD, AUDUSD https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/09/30/US-Dollar-USD-Ready-to-Rumble-High-Impact-Data-EUR-USD-AUD-USD.html https://t.co/4NyN3ROIwJ
  • Senator McConnell signals that a deal is still far off on stimulus $SPX $DJI $DXY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.18%, while traders in Wall Street are at opposite extremes with 69.58%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/cF2BM1c9q9
  • In the very short term, price action in USD/CAD is likely to be distorted by month-end flows. The general view is that month-end is expected to be USD supportive. Get your $USDCAD market update from @JMcQueenFX here: https://t.co/skS3cCMzB4 https://t.co/4o7EFmM86G
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.89% US 500: 1.53% FTSE 100: 0.20% France 40: 0.07% Germany 30: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/o3yVsioOC5
  • Fed's Bowman: - Continued monetary and targeted fiscal support may be needed - If virus worsens asset prices will be vulnerable to price drops - BBG
  • Secretary Mnuchin says he will meet with Senator McConnell today - BBG
  • EUR/USD is currently just holding onto 1.1700 as US dollar strength and Euro weakness combine to keep downward pressure on the pair. Get your $EURUSD market update from @nickcawley1 here: https://t.co/u38O9owdB0 https://t.co/BgVq604gBl
Kiwi Price Analysis: Wedge Holds NZD/USD For Now

Kiwi Price Analysis: Wedge Holds NZD/USD For Now

2020-07-20 18:30:00
Tammy Da Costa, Markets Writer
Share:

NZD/USD Forecast:

  • NZD/USD recovers from March lows but struggles to break out of the wedge formation
  • Fibonacci continues to provide key levels of support and resistance
  • Price action keeps both bulls and bears at bay

NZD/USD Trapped in a Wedge

As a second-wave of Covid-19 infections sweeps through the United States, many have praised New Zealand for its handling of the pandemic which has already allowed for the country to reopen its economy. However, as the second wave now spreads through Australia, tourism is once again being put on hold, potentially producing pressure on the NZD/USD. Although the NZD/USD has managed to recover from March 2020 lows, the pair is now trading in a wedge formation, with bulls and bears patiently waiting for a break in either direction.

The 4-hour chart below highlights the NZD/USD trading in a symmetrical wedge formation, characterized by both lower highs and higher lows, with price action digesting deeper in the wedge.

NZD/USD 4 hour chart with wedge

Chart Prepared by Tammy Da Costa, IG

Fibonacci Maintains Support

From a longer-term perspective, the monthly chart below highlights Fibonacci levels from two major moves. The first Fibonacci retracement (pink) represents the major move from the November 2000 low to the July 2014 high, while the second Fibonacci retracement (blue), is plotted between the March 2009 low to the July 2014 high.

Forex for Beginners
Forex for Beginners
Recommended by Tammy Da Costa
Need help understanding the basics of Forex?
Get My Guide

Although the pair has managed to recover from the March 2020 lows, the two above-mentioned Fibonacci levels have now formed clear areas of support and resistance which, to this point, have kept both bulls and bears at bay.

NZD/USD Monthly Chart

Chart Prepared by Tammy Da Costa, IG

Moving Forward

After recovering from March lows, a strong bullish trend was present, which has now slowed, with price action showing a penchant for mean reversion. If prices break above the current wedge, bulls may focus on an extension of the move, given the presence of the bull pennant formation. A breakout above the wedge/bull pennant will next encounter a key spot of resistance around the psychological level of 0.66; while a break below may see the Kiwi falling towards the 0.64 level, which is confluent with the 61.8% retracement level of the secondary major move looked at above.

Starts in:
Live now:
Oct 01
( 09:10 GMT )
James Stanley’s Webinar for US Dollar Price Action
Becoming a Better Trader in Current Markets
Register for webinar
Join now
Webinar has ended

Client Sentiment

NZD/USD Client Sentiment

According to client sentiment, majority of retail traders are showing a bearish bias towards NZD/USD, with 68% of traders holding short positions. We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests that prices may continue to increase.

Starts in:
Live now:
Oct 01
( 15:10 GMT )
Learn how to identify trends with trader sentiment
Trader's Toolbox: How to Identify Price Trends with Trader Sentiment
Register for webinar
Join now
Webinar has ended

--- Written by Tammy DaCosta, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

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

DISCLOSURES