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.

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
More View More
NZD/USD Technical Analysis: Short Trade Setup Established

NZD/USD Technical Analysis: Short Trade Setup Established

Ilya Spivak,

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Kiwi Dollar Resumes Decline, Breaks Support to Expose November Swing Bottom
  • Short Entry Order Established Just Below 0.66 to Satisfy Risk/Reward Parameters

The New Zealand resumed the decline against its US counterpart after a brief one-day respite, dropping to the lowest level in two months. Sellers now look poised to challenge November’s swing low, where the Kiwi’s previous attempt to build downside momentum stalled and began to reverse.

A daily close below the 0.6414-29 area marked by the November 18 low and the 100% Fibonacci expansion paves the way for a test of the 123.6% level at 0.6303. Alternatively, a reversal back above support-turned-resistance at 0.6525, the 76.4% Fib, opens the door for a retest of the 61.8% expansion at 0.6593.

Our trading strategy requires a 2:1 risk/reward ratio to initiate a trade.With that in mind, we will set an entry order to short NZD/USD at 0.6493. If triggered, the position will initially target 0.6429 and carry a stop-loss to be activated on a daily close above 0.6525.

Losing Money Trading Forex? This Might Be Why.

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

DISCLOSURES