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: Downward Bias Favored

NZD/USD Technical Analysis: Downward Bias Favored

Ilya Spivak, Head Strategist, APAC

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

Talking Points:

  • NZD/USD Technical Strategy: Short at 0.7207
  • Kiwi Dollar rebounds after dropping to one-month low vs USD
  • Overall positioning continues to argue in favor of a downside bias

The New Zealand Dollar paused to digest losses after hitting a monthly low against its US counterpart but chart positioning continues to favor a bearish outlook. Prices topped as expected after retesting trend line support-turned-resistance set from January 2016.

Near-term support is at 0.7138, the 38.2% Fibonacci expansion, with daily close below that clearing a path to challenge the 50% level at 0.7064. Alternatively, a push back above the 0.7229-39 area (23.6% Fib, December 14 high) opens the door for a retest of the 0.7376-0.7403 zone (November 8, February 7 highs).

A short trade taken at 0.7205 hit its first objective and partial profit was booked. A subsequent rebound stopped out the second half of the position at breakeven. Risk/reward parameters look acceptable anew and a fresh short has been activated at 0.7207, targeting 0.7138. Half of exposure will be booked on hitting the first objective. A stop-loss will trigger on a daily close above 0.7239.

Where will NZD/USD go next? Join a Trading Q&A webinar and ask us live!

NZD/USD Technical Analysis: Downward Bias Favored

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

DISCLOSURES