Skip to Content
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: Six-Month Trend Resistance Under Fire

NZD/USD Technical Analysis: Six-Month Trend Resistance Under Fire

Ilya Spivak,
What's on this page

NZD/USD Technical Strategy: FLAT

  • NZ Dollar rebounds as expected but dominant down trend still intact
  • Critical resistance now just above 0.66, support is at the 0.65 figure
  • Bearish reversal signal or clear-cut breakout needed for trade setup

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

The New Zealand Dollar rebounded against its US counterpart after putting in a bullish Morning Star candlestick pattern, as expected. Prices now aim to challenge the outer layer of bearish trend resistance guiding them downward since mid-April.

Confirmation of a break on a daily close above this barrier – now at 0.6613 – opens the door for a challenge of support-turned-resistance in the 0.6688-0.6726 area. Alternatively, a move back near-term support at 0.6501 paves the way for a retest of the October 8 low at 0.6425.

NZD/USD Daily Chart

On balance, the dominant downtrend remains intact for now and prices are too close to resistance to make even a tactical long trade seem attractive. Taking up the short side seems premature absent a clear-cut bearish reversal signal capping recent gains however. Standing aside seems most prudent for now.

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