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.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
NZD/USD Technical Analysis: Five-Month Trend Support Under Fire

NZD/USD Technical Analysis: Five-Month Trend Support Under Fire

What's on this page

NZD/USD Technical Strategy: NEUTRAL

  • Kiwi Dollar testing 5-month support after establishing a double top
  • Daily close below 0.67 may mark resumption of dominant downtrend
  • Improved risk/reward and confirmation needed for actionable trade

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

The New Zealand Dollar turned lower against its US counterpart after putting in a Bearish Engulfing candlestick pattern, as expected. Sellers are now testing trend line support guiding the move higher from early October, a barrier reinforced by a chart inflection area in the 0.6700-20 region.

Breaking below this barrier on a daily closing basis would expose the 0.6591-0.6619 zone next. More broadly, it would suggest that the dominant downtrend started in mid-April 2018 has resumed. Immediate resistance is in the 0.6893-0.6903 band, followed by the 0.6942-69 double top.

New Zealand Dollar vs US Dollar chart - daily

Prices are too close to immediate support to justify entering short from a risk/reward perspective. On the other hand, taking up the long side seems premature absent a defined bullish reversal signal. With that in mind, investors may opt for the sidelines until a more attractive opportunity presents itself.


--- Written by Ilya Spivak, Currency Strategist for

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.