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.

NZDUSD Technical ANALYSIS: NEUTRAL

  • New Zealand Dollar rejected at chart resistance near three-month high
  • Bearish Engulfing candlestick pattern hints a top may have been formed
  • Confirmation of reversal needs break of rising trend line from mid-June

See our free trading guide to help build confidence in your NZDUSD trading strategy!

The New Zealand Dollar put in a Bearish Engulfing candlestick pattern on a retest of support-turned-resistance in the 0.6699-0.6727 area, hinting that the upswing of mid-June lows may have topped. Initial support line in the 0.6653-73 zone, with a break below that on a daily closing basis opening the door for another challenge of the 0.6575-91 region.

NZDUSD Technical Analysis: Is Kiwi Dollar Ready to Turn Lower?

A look at more immediate positioning on the four-hour chart warns against overextrapolation however. Prices are resting at rising trendline support defining the bounds of the latest upside foray, warning that a convincing reversal is yet to be confirmed. Indeed, a bounce from support may yet materialize, with a push above the 0.6682-85 price band putting the June high at 0.6727 back in focus.

New Zealand Dollar vs US Dollar chart - 4 hour

On balance, this makes for conflicted direction cues and hints that traders might opt against showing strong commitment one way or another until greater clarity can be had. A break below trend support – now at 0.6645 – would begin to resolve the matter in sellers’ favor. Alternatively, a daily close above last month’s swing top would invalidate topping cues and set the stage for upward continuation.

NZDUSD TRADING RESOURCES:

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the Comments section below or @IlyaSpivak on Twitter