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.

NZD/USD Technical ANALYSIS: BEARISH

  • NZ Dollar breaches 2019 support shelf, challenging 2018 bottom
  • Long-term positioning hints 19-year uptrend might be fracturing
  • Neutralizing selling pressure probably needs a return above 0.68

Get help building confidence in your NZD/USD strategy with our free trading guide!

The New Zealand Dollar extended lower after breaking the bounds of the upswing from mid-June, pushing below the support shelf in the 0.6482-96 area to challenge the October 2018 low at 0.6425. A daily close underneath that exposes the January 2016 bottom at 0.6348 next.

Alternatively, a move back above 0.6496 – now recast as resistance – opens the door for another test of the 0.6559-91 congestion region. The overall trend bias looks decidedly bearish absent a breach of resistance guiding the broader downtrend since July 2017, now within a hair of the 0.68 figure.

NZD/USD Technical Analysis: Long-Term Price Trend Breaking Down?

NZD/USD daily chart created using TradingView

Zooming out to the monthly chart, a tectonic breakout looks to be in the offing. Prices are on the verge of breaking support defining an uptrend lasting nearly two decades (in fact, it has already given way on a weekly closing basis). If follow-through is found, a move toward the 0.60 figure may be next.

New Zealand Dollar vs US Dollar price chart - monthly

NZD/USD monthly chart created using TradingView

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