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
Subscribe
Please try again
EUR/USD
Mixed
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
Wall Street
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
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • The US Dollar is looking increasingly vulnerable to ASEAN FX, with USD/SGD and USD/THB breaching key support. USD/IDR is eyeing a Rising Wedge, USD/PHP may face February lows. Get your market update from @ddubrovskyFX here:https://t.co/7rSQzu0sx9 https://t.co/rlQpQDURMm
  • The Australian Dollar’s losses against its major counterparts may prove short-lived, as a series of bullish technical setups begin to take shape on multiple AUD crosses. Get your $AUD market update from @DanielGMoss here:https://t.co/kRtix2AW32 https://t.co/giuKDqh1Zi
  • Wall Street Futures Update: Dow Jones (+0.01%) S&P 500 (-0.06%) Nasdaq 100 (-0.3%) -BBG
  • A late-season cold snap in the United States is driving natural gas prices higher this week but will it last? Find out from @FxWestwater here:https://t.co/yMOBLPcSFU https://t.co/aa0s2x0Kce
  • 7 out of 11 S&P 500 sectors ended lower, with 63% of the index’s constituents closing in the red. Energy (-2.66%), financials (-1.81%) and consumer discretionary (-1.22%) underperformed, while defensive-linked utilities (+1.32%) and real estate (+1.12%) outperformed. https://t.co/OkTMeRjfjH
  • 🇳🇿 Inflation Rate QoQ (Q1) Actual: 0.8% Expected: 0.7% Previous: 0.5% https://www.dailyfx.com/economic-calendar#2021-04-20
  • 🇳🇿 Inflation Rate YoY (Q1) Actual: 1.5% Expected: 1.4% Previous: 1.4% https://www.dailyfx.com/economic-calendar#2021-04-20
  • The Canadian Dollar recently weakened against some of its major counterparts. USD/CAD is eyeing key support, with GBP/CAD looking to extend gains. CAD/JPY may bounce next. Get your market update from @ddubrovskyFX here:https://t.co/v9Y6A50NdV https://t.co/3WXFSUMwb6
  • Heads Up:🇳🇿 Inflation Rate QoQ (Q1) due at 22:45 GMT (15min) Expected: 0.7% Previous: 0.5% https://www.dailyfx.com/economic-calendar#2021-04-20
  • Heads Up:🇳🇿 Inflation Rate YoY (Q1) due at 22:45 GMT (15min) Expected: 1.4% Previous: 1.4% https://www.dailyfx.com/economic-calendar#2021-04-20
NZDUSD Options Derived Support and Price in Confluence

NZDUSD Options Derived Support and Price in Confluence

Paul Robinson, Strategist

What’s inside:

  • NZDUSD trend is strong, risk is skewed higher
  • Projected one-week low and price, trend support in confluence
  • Projected one-week high at risk of being exceeded

Looking for a longer-term view on NZDUSD? Check out our Q3 Forecast.

Below, we’ve noted implied volatilities for major USD-pairs for one-day and one-week time-frames. Through implied volatility, we’ve calculated the projected range-low/high prices from the current spot price within one-standard deviation for specified periods. (Statistically speaking, 68% of the time price should remain within the lower and upper-bounds.)

NZDUSD Options Derived Support and Price in Confluence

NZDUSD rally has been strong, price support and options-derived one-week support suggests it won’t fall apart easily

Last week, NZDUSD easily blasted on through resistance in the zone surrounding 7350. The trend is clearly higher along with its sibling currency pair, AUDUSD, and as such the path of least resistance upward won’t be easily reversed in either. The preferred way to enter is via a pullback, and most ideally at a level or zone of support. Kiwi has sound horizontal support in the 7350-vicinity along with a trend-line rising up from May; these align with the one-standard deviation one-week projected low of 7339. If the recent leg up is only the beginning of another sizable run higher like the one seen in May/June, then we might not see a pullback develop into support. But if it does, it could be a good low-risk, high-reward entry for longs. Overall, barring a major turn of events it looks unlikely we will see NZDUSD drop below noted support.

Looking higher, the one-week projected range-high is above the September high and well below major levels of resistance carved out in 2015 just over 7700. This means there may be room to run, and should the projected high be overcome then the options market may be proven in the short-term to have underestimated kiwi strength.

Heads up: On Wednesday, the FOMC will release its decision on interest rates and with the Fed expected to hold pat on rates, focus will be on the policy statement and hints as to what the central bank will do at the meeting in September.

For other currency volatility-related articles please visit the Binaries page.

NZDUSD: Daily

NZDUSD Options Derived Support and Price in Confluence

See the Webinar Calendar for a schedule of upcoming live events with DailyFX analysts.

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

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

DISCLOSURES