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.

Free Trading Guides
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
Wall Street
More View more
NZD/USD Technical Analysis: NZ Dollar Upswing May Soon Fizzle

NZD/USD Technical Analysis: NZ Dollar Upswing May Soon Fizzle

2019-01-11 07:30:00
Ilya Spivak, Head Strategist, APAC

NZD/USD Technical Strategy: Flat

  • New Zealand Dollar breaks near-term resistance, eyeing December high
  • Early topping cues on 4-hour chart hint recent gains may be corrective
  • NZD/USD short closed with small gain, confirmation sought to re-enter

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

The New Zealand Dollar reversed upward having briefly tested below the 0.66 figure, breaking downtrend resistance guiding the decline from the early-December high. Prices now aim to challenge inflection point resistance at 0.6884, with a break that exposing the December 4 high at 0.6969.

Near-term support lines up in the 0.6754-78 area. A turn back below that confirmed on a daily closing basis opens the door for another challenge of the 0.6686-0.6713 zone. This is conveniently reinforced by trend line resistance-turned-support, making performance here a referendum on the validity of the upside breakout.

New Zealand Dollar vs US Dollar chart - daily

Shorter-term positioning seems to be warning against betting on upside follow-through. Early signs of negative RSI divergence are emerging as prices prepare to test the underside of former support, hinting at ebbing upside momentum that may precede topping and a subsequent reversal downward.

NZD/USD Technical Analysis: NZ Dollar Upswing May Soon Fizzle

The short NZD/USD position activated at 0.6869 has been closed with a small gain following confirmation of the break through trend line resistance. Opportunities to re-establish exposure if near-term reversal cues are validated with a break below 0.6767. In the meantime, opting to stand aside seems prudent.


--- 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.


News & Analysis at your fingertips.