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
Real Time News
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/vLNjo8Do3b
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.78%, while traders in France 40 are at opposite extremes with 82.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/uGKj2WUGcB
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.53% 🇨🇦CAD: 0.12% 🇦🇺AUD: 0.11% 🇪🇺EUR: 0.06% 🇨🇭CHF: 0.02% 🇯🇵JPY: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/8GopfGXi3V
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.19% France 40: 0.16% FTSE 100: 0.15% US 500: -0.10% Wall Street: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/biCoFOmHkb
  • Wall Street Futures Update: Dow Jones (-0.07%) S&P 500 (-0.08%) Nasdaq 100 (+0.002%) [delayed] -BBG
  • Dow Jones Rebound May Lift APAC Stocks, Alibaba Earnings Miss https://www.dailyfx.com/forex/market_alert/2021/08/04/Dow-Jones-Rebound-May-Lift-APAC-Stocks-Alibaba-Earnings-Miss-.html https://t.co/RYUoBEiYyn
  • Listen to my thoughts about OCBC, UOB earnings via MoneyFM podcast with Ryan Huang this morning: https://t.co/3BP2EBSMMk https://t.co/GVolwG2wZ0
  • *Dalilah Still in awe!
  • and Daliah Muhammad too, both broke the word record Unreal!
  • If you’re not watching the #Olympics you just missed an incredible performance by Sydney McLaughlin, one for the ages
NZD/USD Technical Analysis: NZ Dollar Upswing May Soon Fizzle

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

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.

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