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
GBP/USD
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
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
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The $AUD is pressuring four-month trend support against its US counterpart as sellers fight to reassert the dominant, long-term downtrend. Get your market update from @IlyaSpivak here:https://t.co/Bup64Arva9 https://t.co/CpraRXneTJ
  • The British Pound may fall as #Brexit commences, but will the Bank of England cut rates? The US Dollar could rise if the Fed spooks markets with plans to unwind repo operations $GBPUSD #BoE #GBP #Sterling - https://www.dailyfx.com/forex/fundamental/forecast/weekly/gbp/2020/01/26/British-Pound-May-Yet-Fall-on-Brexit-BoE-and-Fed-Are-Risks.html?CHID=9&QPID=917702 https://t.co/v39NsmOCwa
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/5VQdkbIqTo
  • Last week was more of the same, a narrowing range following the UK general election fireworks; GBP/USD has a couple of clear signposts to keep an eye on. Get your $GBPUSD technical analysis from @PaulRobinsonFX here: https://t.co/3pJfj0w2AX https://t.co/Cm6zhnBSGR
  • The $AUD is pressuring four-month trend support against its US counterpart as sellers fight to reassert the dominant, long-term downtrend. Get your market update from @IlyaSpivak here: https://t.co/Bup64Arva9 https://t.co/OLpavqPOVA
  • RT @globaltimesnews: A total of 1,052 cases of #coronavirus have been reported as of Jan 25 in #Hubei Province, with 129 in critical condit…
  • RT @FactSet: $SPX is reporting revenue growth of 2.9% for Q4, led by the Health Care (11%), Utilities (9%), and Communication Services (9%)…
  • The AUD has been hit by the risk-appetite pullback occasioned by the spread of Wuhan-strain coronavirus. This week may see domestic focus return, if headlines allow, with key inflation data due. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/UIpwno0pSq https://t.co/kib4d1mA0q
  • RT @anilvohra69: USD inverted (red) is correlated to Excess Reserves (blue) and Reserve Balances (green). 1/2 https://t.co/bbO1pPWY4F
  • RT @FactSet: $SPX is reporting a decline in earnings of -1.9% for Q4, led by the Energy (-42%), Consumer Discretionary (-14%), and Material…
NZD to Threaten Key Support, CAD Offers Range-Trade Opportunities

NZD to Threaten Key Support, CAD Offers Range-Trade Opportunities

2012-03-21 16:27:00
Michael Boutros, Technical Strategist
Share:

Daily Winners and Losers

NZD_to_Threaten_Key_Support_CAD_Offers_Range-Trade_Opportunities_body_Picture_5.png, NZD to Threaten Key Support, CAD Offers Range-Trade OpportunitiesNZD_to_Threaten_Key_Support_CAD_Offers_Range-Trade_Opportunities_body_Picture_4.png, NZD to Threaten Key Support, CAD Offers Range-Trade OpportunitiesNZD_to_Threaten_Key_Support_CAD_Offers_Range-Trade_Opportunities_body_Picture_3.png, NZD to Threaten Key Support, CAD Offers Range-Trade Opportunities

The Canadian dollar is the top performing currency against a stronger greenback at noon in New York with decline of just 0.08% on the session. The dollar has continued to rally after mounting its counteroffensive yesterday with the USDCAD rebounding sharply off soft support at 9875 in early European trade. The pair has continued to hold a tight range over the past few days and may continue to decouple from broader market risk trends in the interim.

Topside resistance stands at the 38.2% extension taken from the March 1st and 19th troughs at 9930 with key resistance seen at the confluence of the 50% extension and trendline resistance dating back to November 25th at 9950. A breach above this level risks further losses for the loonie with such a scenario eyeing subsequent ceilings at the 61.8% extension at 9975 and the 78.6% extension just above parity. Interim support rests with the 23.6% extension at 9900 backed by the overnight low at 9875 and 9860. Critical support rests at the March lows made on the first of the month at 9845. We remain neutral on the pair at these levels noting that a break above trendline resistance dating back to November offers further conviction on our topside directional bias.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

0.9999

100-Day SMA

1.0112

50-Day SMA

0.9987

2011 CAD HIGH

0.9406

NZD_to_Threaten_Key_Support_CAD_Offers_Range-Trade_Opportunities_body_Picture_2.png, NZD to Threaten Key Support, CAD Offers Range-Trade OpportunitiesNZD_to_Threaten_Key_Support_CAD_Offers_Range-Trade_Opportunities_body_Picture_1.png, NZD to Threaten Key Support, CAD Offers Range-Trade Opportunities

The New Zealand dollar is the weakest performer for a second consecutive day with the kiwi off by more than 0.50% on the session. The NZDUSD has continued to trade within the confines of a descending channel formation with the pair breaking below the 61.8% Fibonacci retracement taken from the March 14th advance at 8145 in early US trade. This level will now act as interim resistance with subsequent ceilings seen at 8180 and the confluence of the 38.2% retracement and channel resistance at the 82-figure. Interim support now rests at 8120 backed closely by the 78.6% retracement at 8108 and the 200-day moving average just above 8080. A break below 8060 risks substantial losses for the kiwi with such a scenario eyeing longer-term targets at the 100-day moving average just shy of the 80-figure.Look for the kiwi to consolidate into the close with a pullback of some magnitude likely on the heels of the drawdown from 8290. Our medium-term bias on the pair remains weighted to the downside.

*Note that the RBNZ GDP printis on tap for 2145GMT with consensus estimates calling for a read of 2.2% y/y, up from a previous print of 1.9% y/y. The data is likely to fuel volatility in the pair and as such traders are recommended to be flat into the print until such time that a clear markets direction can be identified.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

0.8093

100-Day SMA

0.7979

50-Day SMA

0.8229

2011 NZD HIGH

0.8842

---Written by Michael Boutros, Currency Strategist with DailyFX.com

Join Michael on Tomorrow morning for a Live Scalping Webinar at 1230GMT (8:30ET)

To contact Michael email mboutros@dailyfx.com or follow him on Twitter @MBForex

To be added to Michael’s distribution list, send an email with the subject line “Distribution List”

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

DISCLOSURES

News & Analysis at your fingertips.