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.

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
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here: https://t.co/6ZH026QLRN https://t.co/JJIyKh8r1l
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day. https://t.co/H9KQjR3ViK
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/tl54v6sKkX
  • Moving averages are extremely popular due to its easy-to-use nature and multitude of uses when trading. What are some popular moving averages and how can you use them? Find out: https://t.co/ik0wQ3MLGE https://t.co/heAYoTMDeR
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:https://t.co/ZNs4Qi8ieG https://t.co/UqZBBPZiOl
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/rChAkNqPL2
  • Long wick candles are recurrent within the forex market. This makes understanding the meaning behind these candles invaluable to any trader to comprehend the market dynamics during a specific period. Learn about the importance of extended wicks here: https://t.co/SIpslvhX0J https://t.co/jVxcE1QUBs
  • Safe haven stocks also allow traders to diversify their portfolio and reduce risk. Learn if safe-haven stocks are made for you here: https://t.co/MTc4tUDD6c https://t.co/DOQ6tyzep9
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/WQLZ1X7gIY
  • but the next major point in my view to monitor will be 52.76 - at least in the short term.
NZD/USD Technical Analysis: Bounce May Yield Short Trade Setup

NZD/USD Technical Analysis: Bounce May Yield Short Trade Setup

2018-05-08 01:00:00
Ilya Spivak, Head Strategist, APAC
Share:

NZD/USD Technical Strategy: FLAT

  • Morning Star candlestick pattern hints at New Zealand Dollar bounce
  • Divergence on 4-hour RSI bolsters the case for ebbing selling pressure
  • Upswing may offer opportunity to sell into the broader bearish trend

Join our free webinars to follow the impact of key data and the RBNZ rate decision on NZD/USD!

The New Zealand may be readying an attempt at recovery against its US counterpart after prices slid to the lowest level in over four months. The appearance of a bullish Morning Star candlestick pattern may precede a bounce. Whether such a move marks a correction or genuine reversal remains to be seen.

New Zealand Dollar vs US Dollar daily price chart

Zooming in from the daily chart to shorter-term positioning, the setup on the four-hour timeframe reveals positive RSI divergence that bolsters the case for ebbing upside momentum. Immediate trend resistance is still holding however, so it is premature to say whether an upswing or sideways drift will follow.

NZD/USD Technical Analysis: Bounce May Yield Short Trade Setup

Absent further confirmation, standing aside seems prudent. With that said, selling into signs of topping after a bounce to retest trend-defining resistance near 0.7140 seems like an attractive proposition, were such an opportunity to materialize. Near-term price action will be closely monitored for progress.

NZD/USD TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the Comments section below or @IlyaSpivak on Twitter

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

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

DISCLOSURES