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.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/gLJGj1FAOC
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/J0MMkVmCUu
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
  • EUR/USD has been weakening since the start of 2020 and the decline has accelerated this month. At some point there will be a correction but further losses are still likely as the year progresses. Get your $EURUSD market update from @MartinSEssex here: https://t.co/ieJUBNeAIf https://t.co/Dw4f7DQocg
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/0Wn4xBL0AY
  • Do you know which type of stock is the right investment for you? Stock types help investors decide on specific #stocks to trade or assist with valuation methods either fundamentally or technically. Learn more about stock types here: https://t.co/yO3JalkqUU https://t.co/RoNdExHAdt
  • The status of the US #dollar as the safe-haven asset of choice remains untouched and any weakness in the greenback is likely to be short-lived. Get your $USD market update from @nickcawley1 here: https://t.co/LO2u38jpUT https://t.co/ctgCJSOeTH
  • #FTSE 100 testing key support as the index lacks a directional bias. #DAX reverses off channel top. Get your indices technical analysis from @JMcQueenFX here: https://t.co/IHF2dgMfg9 https://t.co/2fMTFlOeTR
NZD/USD Technical Analysis: Critical Range Floor Under Pressure

NZD/USD Technical Analysis: Critical Range Floor Under Pressure

2018-05-24 08:29:00
Ilya Spivak, Sr. Currency Strategist
Share:

NZD/USD Technical Strategy: FLAT

  • New Zealand Dollar testing range support in play since December 2016
  • Short-term positioning hints at downside bias but confirmation is absent
  • Waiting for better-defined setup seems wise before committing to a trade

See our free trading guide to help build confidence in your NZD/USD trading strategy!

The New Zealand has dropped to test support at the bottom of a range that has contained the currency’s moves against its US counterpart since December 2016. While this has proven to be the launch pad for significant forays to the upside however, the bounds of the near-term uptrend remain intact for now.

Range support stands in the 0.6781-0.6862 area. A break below its lower boundary may suggest the long-term down trend started from highs set in July 2014 is resuming. Alternatively, a daily close above falling trend line resistance at 0.6931 might precede an upswing akin to those launched in May and November 2017.

New Zealand Dollar vs US Dollar - daily chart

Turning to the four-hour chart, it looks like the latest down leg started in late April has given way to a corrective upswing. The move higher has traced out a Flag chart pattern, a setup typically indicative of forthcoming trend continuation. In this case, that carries bearish implications.

Still, an actionable short trade setup needs confirmation on a break below the Flag’s lower boundary. Alternatively, a breach above the 0.70 figure would invalidate that read on price positioning, suggesting that something more substantive than a brief upside retracement is in the works.

New Zealand Dollar vs US Dollar - 4-hour chart

On balance, this makes for an inconclusive setup. The downside scenario is perhaps a bit more probable but taking a trade one way or another seems premature until positioning producers a more explicit trigger. In the meantime, standing aside seems most prudent.

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

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

DISCLOSURES

News & Analysis at your fingertips.