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: Key 6-Month Support Broken

NZD/USD Technical Analysis: Key 6-Month Support Broken

Ilya Spivak, Head Strategist, APAC

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Kiwi Dollar at risk of deeper losses on 6-month support break
  • Near-term upswing may offer improved short entry opportunities

The New Zealand Dollar looks vulnerable to deeper losses against its US namesake after prices slipped below support capping losses since June. The pair faced heavy selling in the aftermath of last week’s FOMC rate decision, erasing all of December’s gains in just three days.

From here, a daily close below the 61.8% Fibonacci expansion at 0.6921 opens the door for a challenge of the 76.4% level at 0.6846. Alternatively, a move back above the 50% Fib at 0.6982 paves the way for a retest of the 38.2% expansion at 0.7042.

The available trading range is too narrow to justify taking a trade from a risk/reward perspective. Furthermore, the fundamental landscape may allow for a corrective US Dollar pullback, which might offer better entry opportunities than currently available. In the meantime, staying flat seems most prudent.

See the schedule of upcoming webinars and join us LIVE to follow the financial markets!

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

DISCLOSURES