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
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
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
Gold
Bullish
Low
High
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
Bearish
Bitcoin
Mixed
More View more
Real Time News
  • The $JPY may resume a five-year rise against the New Zealand Dollar if prices make good on a Head-and-Shoulders pattern, pushing NZD/JPY toward 70.00. Get your market update from @IlyaSpivak here:https://t.co/zK0eeqdWp6 https://t.co/Z3zbwkwDUu
  • CHF Switzerland Exports MM Actual: -3.4% Previous: -0/4% (R) Imports MM Actual: 0.2% Previous: -0.1% (R) Watch Exports Actual: 5.8% Previous: -3.1% (R)
  • European Opening Calls From IG: #FTSE 7438 +0.35% #DAX 13289 +0.63% #CAC 5898 +0.59% #AEX 602 +0.50% #MIB 23558 +0.61% #IBEX 9426 +0.64% #STOXX 3699 +0.58%
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/E9KFcS1ebz
  • Join Analyst @ddubrovskyFX for LIVE coverage of Australian CPI data where he will be discussing the outlook for the Australian Dollar beginning at 00:15 GMT on Wednesday the 29th below! $AUDUSD #AUDJPY $AUDNZD $AUDCAD - https://t.co/OkNykQSRsI
  • The New Zealand Dollar may fall against the Japanese #Yen after downside breakouts in $NZDJPY and an #NZD index. Fundamental catalysts include the #coronavirus, China PMI and the #Fed - https://www.dailyfx.com/forex/analyst_picks/todays_picks/daniel_dubrovsky/2020/01/28/New-Zealand-Dollar-Japanese-Yen-Outlook-NZDJPY-Uptrend-at-Risk.html?CHID=9&QPID=917702 https://t.co/r1R2CfwJzF
  • My trading video for the upcomign session: 'S&P 500, Crude Oil, Yield Curve Tumble as Risk Aversion Aligns to Flu Fears' https://www.dailyfx.com/forex/video/daily_news_report/2020/01/28/SP-500-Crude-Oil-Yield-Curve-Tumble-as-Risk-Aversion-Aligns-to-Flu-Fears.html https://t.co/Bcl3xX99ya
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.42%, while traders in US 500 are at opposite extremes with 67.97%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/VaZ5CnWGft
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.06% 🇪🇺EUR: 0.03% 🇬🇧GBP: -0.01% 🇳🇿NZD: -0.03% 🇯🇵JPY: -0.05% 🇨🇭CHF: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/EdKF0XF8z0
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.41% France 40: 0.40% US 500: 0.39% Germany 30: 0.25% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/8BrsH6ji0L
NZD/USD Technical Analysis: NZ Dollar Surge Belies Downtrend

NZD/USD Technical Analysis: NZ Dollar Surge Belies Downtrend

2019-12-03 02:30:00
Ilya Spivak, Sr. Currency Strategist
Share:

NZD/USD Technical ANALYSIS: BEARISH

  • NZ Dollar surges above range top, hits four-month high vs. USD
  • Rally now faces 28-month resistance defining dominant direction
  • Weekly chart setup hints rise corrective within long-term decline

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

The New Zealand Dollar launched sharply higher, punching through long-standing resistance in the 0.6425-41 area and even slipping past former support in the 0.6482-96 zone. That puts the currency on a collision course with trend-defining resistance set from July 2017.

The outer layer of this barrier is now at 0.6682. Breaking above that on a daily closing basis would neutralize near-term selling pressure, setting the stage for substantial upside follow-through. Short of that however, the dominant trend bias continues to favor a broadly bearish bias.

New Zealand Dollar vs US Dollar price chart - daily

Daily NZD/USD chart created using TradingView

Zooming out to the weekly chart makes this point in more dramatic fashion, revealing that 28-month downtrend resistance is being reinforced by the underside of trend support dating back nearly two decades. It was broken in early August, in what appears to have been a tectonic bearish shift.

NZD/USD Technical Analysis: NZ Dollar Surge Belies Downtrend

Weekly NZD/USD chart created using TradingView

Within this context, recent gains appear to be corrective. Indeed, if ever there was a technically well-placed point to cut off gains and trigger downtrend resumption, the region near the 0.66 figure is it. The absence of an actionable short trade signal means only time will tell if such a thing actually occurs however.

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

News & Analysis at your fingertips.