Never miss a story from Ilya Spivak

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Ilya Spivak

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

NZD/USD Technical Strategy: FLAT

  • 2-month countertrend support break hints NZ Dollar bounce over
  • Initial support centered on 0.67, resistance just below 0.69 mark
  • Short NZD/USD triggered, eyeing longer-term trend resumption

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

The New Zealand Dollar put in a bearish Dark Cloud Cover candlestick pattern and turned downward on a test of resistance in the 0.6837-84 area. The setup hints that a nearly two-month upswing against its US namesake may have run its course.

NZD/USD Technical Analysis: Two-Month Support Line Broken

Zooming into the four-hour chart, prices appear to have broken counter-trend support guiding the upswing since late October. That bolsters the case for bearish resumption and seemingly opens the door for a decline to test the first layer of significant support in the 0.6680-0.6708 area.

New Zealand Dollar vs US Dollar chart - 4hr

Signs of bearish reversal appeared to be accompanied by attractive risk/reward parameters and a short NZD/USD position was triggered at 0.6785. The trade will initially target 0.6680-0.6708 but the ultimate take-profit level will be a function of price action and is to be decided on a discretionary basis.

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