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
EUR/USD
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
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
Wall Street
Bearish
Gold
Bearish
GBP/USD
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
USD/JPY
Mixed
More View more
Real Time News
  • Looks like we got everyone's view on it: https://t.co/Y0zskurvsB
  • Commodities Update: NYM WTI Crude 39.83 (+0.08%), ICE Brent Crude 41.69 (-0.07%), NYM NYH Gasoline 117.81 (+1.19%). [delayed]
  • Today's webinar recording if you missed it live - https://t.co/JyBaVkbzI8
  • US Dollar Price Action Setups: EUR/USD, GBP/USD, AUD/USD https://www.dailyfx.com/forex/analyst_picks/todays_picks/james_stanley/2020/09/23/US-Dollar-Price-Action-Setups-USD-EUR-USD-EURUSD-GBP-USD-GBPUSD-AUD-USD-AUDUSD.html https://t.co/mXFX1rWAr0
  • Canadian #Dollar Outlook: $USDCAD Breakout Levels- Bull’s First Test - https://t.co/sDdpxq3Zxd https://t.co/mFLUeJ8sY2
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.05% Gold: -1.79% Silver: -5.98% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/wrmWnBAFaX
  • TikTok files for a preliminary injunction against Trump ban - BBG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.16%, while traders in NZD/USD are at opposite extremes with 63.82%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/BUdnibnuey
  • The DAX 30 is on pace for a noteworthy weekly loss after a key trendline was breached. Get your #DAX market update from @PeterHanksFX here: https://t.co/OoQaBTGv8I https://t.co/1yoq1vYqV5
  • Fed's Quarles: -Decline in inflation expectations bears watching -Will take long time to fully recover from coronavirus shock -Sees strong momentum in household spending -Will be patient reacting to upward inflation deviations $USD $XAU
NZD/USD Technical Analysis: Struggling to Get Below 2009 Support

NZD/USD Technical Analysis: Struggling to Get Below 2009 Support

2018-06-25 00:30:00
Daniel Dubrovsky, Analyst
Share:

NZD/USD Technical Analysis: Struggling to Get Below 2009 Support

  • The New Zealand Dollar stalled its descent multiple times now on the March 2009 line
  • Another bullish reversal pattern has formed, but this time on the daily chart. Watch it
  • A pullback to resistance may lack momentum as former support reestablishes itself

Just getting started trading the New Zealand Dollar? See our beginners’ guide for FX traders to learn how you can apply this in your strategy!

Last time we looked at the New Zealand Dollar, we noted a couple of warning signs that the pair was about to turn higher. NZD/USD followed through but it was not long until the pair reversed lower after losing momentum. For now, the long-term rising trend line noted on the monthly chart below is still in play and the pair has a couple of key obstacles to overcome if it wants to keep descending.

NZD/USD Technical Analysis: Struggling to Get Below 2009 Support

Zooming in on the weekly chart, you will note that the Morning Star bullish reversal pattern formed back in late-May failed to generate much follow-through and the downtrend since mid-April appears to be trying to resume course. Though at this point, we still do not have a weekly close below the March 2009 line. Instead, Kiwi Dollar tested horizontal support from May 2017.

NZD/USD Technical Analysis: Struggling to Get Below 2009 Support

Looking at the daily chart gives us a better picture of what has been going on around those key support areas. Now, another morning star has formed and warrants close attention as this could mean the pair may turn higher in the near-term. In fact, prices were unable to close below the May 16th low at 0.6852 and they stalled just above 0.6818 at one point.

All of this points to very stubborn and well-established floors that the pair will have to fall through before we can confirm that NZD/USD is heading for a lasting continuation of its downturn from mid-April. Nevertheless, a break below support (which is closely aligned with the 50% Fibonacci extension at 0.6788) opens the door to test the 61.8% level at 0.6723. At that point, we are looking at 2016 lows.

On the other hand, a turn higher that confirms that morning star has the 23.6% extension as immediate resistance at 0.6932. A break above that opens the door to test a near-term rising support line from mid-May which could act as new resistance. Beyond that lies the 14.6% minor level at 0.6981.

NZD/USD Technical Analysis: Struggling to Get Below 2009 Support

NZD/USD Trading Resources:

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES