Skip to Content
News & Analysis at your fingertips.
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: Stalling at Trend Line Support

NZD/USD Technical Analysis: Stalling at Trend Line Support

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • New Zealand Dollar treading water at four-month trend support
  • Looking to FOMC, RBNZ for a break in dead-locked positioning

The New Zealand Dollar declined against its US namesake as expected after the pair put in a Bearish Engulfing candlestick pattern. A larger reversal has failed to gain traction thus far however, with prices stalling at a support line that has defined the uptrend since late May.

From here, a daily close below the August 30 swing bottom at 0.7204 opens the door for a test of a horizontal pivot level at 0.7102. Alternatively, a push above the 14.6% Fibonacci expansion at 0.7353 paves the way for a challenge of the 0.7426-50 area (23.6% level, September 7 close).

Inconclusive positioning argues against taking a trade at current levels. Furthermore, on-coming event risk by way of the FOMC and RBNZ monetary policy announcements threatens to spark dramatic volatility and materially change the setup. With that in mind, opting for the sidelines seems prudent for now.

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

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