Skip to Content
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. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
NZD/USD Technical Analysis: Short Trade Triggered Sub-0.64

NZD/USD Technical Analysis: Short Trade Triggered Sub-0.64

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • NZD/USD Technical Strategy: Short at 0.6370
  • Kiwi Aiming to Resume Down Trend on Range Floor Break
  • Short Trade Triggered, Aiming for Move Below 0.63 Figure

The New Zealand Dollar looks vulnerable to deeper losses against its US counterpart after prices broke support near the 0.64 figure. Prices spiked to a six-year low last week but failed to maintain momentum, settling in a narrow range below the 0.65 mark.

From here, a daily close below the 38.2% Fibonacci expansion at 0.6219 exposes the next downside barrier at 0.6069, the 50% level. Alternatively, a move back above the 23.6% Fib at 0.6406 opens the door for a challenge of the 0.6497-0.6521 area, marked by the July 15 low and the 14.6% expansion.

We previously opted against taking a short trade on risk/reward grounds. The latest break lower has adequately expanded the trading range to improve positioning and we will now sell the pair, initially aiming for another test of 0.6219. A stop-loss will be activated on a daily close above 0.6521. We will take profit on half of the position and move the stop-loss to breakeven once the first objective is reached.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

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