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: Five-Month Resistance at Risk

NZD/USD Technical Analysis: Five-Month Resistance at Risk

Ilya Spivak, Head Strategist, APAC

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • New Zealand Dollar on pace to break five-month trend line resistance
  • Move higher seen as corrective despite forceful upside momentum

The New Zealand Dollar is soaring against its US counterpart, with prices poised to clear resistance capping gains since mid-October 2015. The aggressive push higher follows comments from Fed Chair Janet Yellen that traders perceived as diminishing scope for on-coming interest rate hikes.

A daily close above the 50% Fibonacci expansion at 0.6932 paves the way for a test of the 61.8% level at 0.6994, and subsequently the 0.70 figure. Alternatively, move back below the 38.2% Fib at 0.6869 sees the next downside barrier at 0.6793, the 23.6% expansion.

While the momentum behind the upward push has been undeniably impressive, we continue to expect gains to prove corrective in the context of a larger down trend in line with our 2016 fundamental forecast. With that in mind, we will remain on the sidelines for now and wait for a selling opportunity to emerge once the upswing fizzles.

FXCM traders are net-long NZD/USD.Find out what this means for the trend going forward!

NZD/USD Technical Analysis: Five-Month Resistance at Risk

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

DISCLOSURES