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: Down Trend Back in Play?

NZD/USD Technical Analysis: Down Trend Back in Play?

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 breaks rising near-term support, hinting down trend back in play
  • Choppy positioning argues against short trade absent clear invalidation point

The New Zealand Dollar broke guiding price higher over the past month, hinting that the medium-term down trend started in late July may be resuming. The boundaries of the long-term advance initiated in August 2018 remain intact and have not been challenge since mid-May.

The next layer of significant support lines up at 0.7132, the August 31 low, with a break below that on a daily closing basis opening the door for a retest of former resistance at 0.7054. Alternatively, a push back above the just-broken countertrend line, now at 0.7242, broadly exposes the September 20 close at 0.7355.

Entering short seems somewhat compelling from a purely technical perspective but risk/reward considerations warn against taking the trade. Specifically, an acceptable invalidation point to place a stop-loss given a would-be target at 0.7132 is not apparent. With that in mind, opting to remain flat appears to be most prudent.

Just getting started trading NZD/USD and need help with your approach? See our beginners’ guide!

NZD/USD Technical Analysis: Down Trend Back in Play?

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

DISCLOSURES