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: 2-Month Low Hit, Deeper Drop Expected

NZD/USD Technical Analysis: 2-Month Low Hit, Deeper Drop Expected

Ilya Spivak,
What's on this page

NZD/USD Technical Strategy: 0.6869

  • New Zealand Dollar aims to extend decline after hitting two-month low
  • Head and Shoulders topping pattern continues to point below 0.66 mark
  • Waiting for improved risk/reward parameters to add to short position

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

The New Zealand Dollar continues to sink against its US counterpart, hitting a two-month low after marking a top below the 0.70 figure with the appearance of an Evening Star candlestick pattern (as expected). A broader Head and Shoulders bearish reversal pattern implies a move below the 0.66 figure is in the cards.

For now, immediate support is in the 0.6619-0.6592 area. A break below that confirmed on a daily closing basis exposes the 0.65 figure next. Alternatively, a move back above support-turned-resistance in the 0.6686-0.6713 zone targets 0.6778, another former support reinforced by a falling trend line.

NZD/USD Chart (Daily)

The short NZD/USD trade triggered at 0.6869 remains in play, aiming to capture downside follow-through. However, adding to the position seems unattractive from a risk/reward perspective at this point, with the pair sitting squarely atop near-term support.

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