NZD Technical Analysis Overview: NZDUSD & NZDJPY Focus Ahead of RBNZ
NZD Analysis and Talking Points
See our Q3 FX forecast to learn what will drive the currency through the quarter.
NZDUSD Relatively Rangebound, Support from 0.6680-0.67
Prices are still within the 0.67-0.6850 range with the pair situated at the 61.8% Fibonacci retracement. Buying interest above the 0.6700 continue to underpin the currency, however, DMAs do continue to head south, which in turn brings into focus the 0.6680-0.67 support area, whereby a firm break could open the gate to larger losses back down towards the mid-0.65s. On the topside, targets are for 0.68 and 0.6860.
IG Client Positioning SentimentTraders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger NZDUSD-bearish contrarian trading bias.
NZDUSD PRICE CHART: Daily Time Frame (January 2018-August 2018)
NZDJPY Key Fib is Holding For Now
The negative bias in the cross remains intact given the series of lower highs, while a rejection from the 50% Fib level sparking renewed selling in the cross. Eyes now on for a firm break below the 61.8% Fib level at 74.80, which is acting as support for now. If indeed this gives way, then the cross will look to make a move towards the 2018 low at 74.08 before making a run in on the November 9th low situated at 73.70.
NZDJPY PRICE CHART: Daily Time Frame (April 2016 – August 2018)
--- Written by Justin McQueen, Market Analyst
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