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: Kiwi Rises to 1-Year High

NZD/USD Technical Analysis: Kiwi Rises to 1-Year High

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 rises to one-year high after RBNZ rate decision
  • Tactical and risk/reward considerations argue against taking a trade

The New Zealand Dollar continued to surge against its US counterpart, taking out April’s swing high and hitting the highest level in a year. The rally found fresh fodder in the RBNZ monetary policy announcement as the central bank signaled it is in no hurry to resume interest rate cuts.

From here, a daily close above the 61.8% Fibonacci expansion at 0.7112 opens the door for a test of the 76.4% level at 0.7215. Alternatively, a reversal below the 50% Fib at 0.7089 paves the way for a challenge of the 38.2% expansion at 0.6945.

On one hand, prices are too close to near-term resistance to justify entering long from a risk/reward perspective. On the other, the absence of a clear-cut bearish reversal signal suggests it is premature to take up the short side. With that in mind, staying flat seems most attractive for the time being.

Losing money trading NZD/USD? This might be why.

NZD/USD Technical Analysis: Kiwi Rises to 1-Year High

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

DISCLOSURES