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
Oil - US Crude
Bullish
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
Bullish
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
More View more
NZD/USD Technical Analysis: 3-Month Trend Support at Risk

NZD/USD Technical Analysis: 3-Month Trend Support 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 drops to challenge three-month trend support
  • Adverse risk/reward parameters argue against taking short trade

The New Zealand Dollar declined against its US counterpart after the formation of a Bearish Engulfing candlestick pattern, as expected. Prices are now challenging rising trend line support that has limited the downside and guided the pair higher since late May.

A daily close below trend line support – now at 0.7237 – opens the door for a test of the 38.2% Fibonacci retracement at 0.7176. Alternatively, a reversal back above support-turned-resistance in the 0.7294-0.7308 area (23.6% level, double top) paves the way for a challenge of the 14.6% Fib at 0.7367.

Prices are much too close to near-term support to justify entering short from a risk-reward perspective. Positioning is made less attractive still considering the daily narrowing of the available trading range courtesy of an upward-sloping lower bound. Opting for the sidelines seems prudent for now.

What do past NZD/USD price patterns hint about current trends? Find out here!

NZD/USD Technical Analysis: 3-Month Trend Support at Risk

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

DISCLOSURES