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.

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: Kiwi Drops Most in 7 Months

NZD/USD Technical Analysis: Kiwi Drops Most in 7 Months

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

Talking Points:

  • NZD/USD Technical Strategy: Short at 0.7394
  • Kiwi Dollar sinks after trend line break, drops to lowest in a month
  • RBNZ intervention threat triggers largest one-day drop since January

The New Zealand Dollar accelerated lower against its US counterpart as expected, suffering the largest drop since January and hitting the lowest level in a month. The currency slumped after RBNZ policymakers threatened to intervene in FX markets to weaken it.

Prices are testing support in the 0.7259-76 area (chart inflection point, 38.2% Fibonacci retracement), with a break below that confirmed on a daily closing basis opening the door for a test of the 50% level at 0.7188. The first big upside hurdle is in the 0.7384-0.7411 zone (23.6% Fib, trend line support-turned-resistance).

The objective on the NZD/USD short trade from 0.7394 has been met and profit has been booked on half of open exposure. The rest of the position will be left in play to capture any follow-on weakness. The stop-loss has been trailed to the breakeven level.

Need help with your NZD/USD strategy? Check out our trading guides !

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