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.

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
EUR/USD
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
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
Wall Street
Bearish
Gold
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
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • 🇺🇸 Housing Starts MoM (SEP) Actual: 1.9% Previous: -5.1% https://www.dailyfx.com/economic-calendar#2020-10-20
  • 🇺🇸 Building Permits MoM (SEP) Actual: 5.2% Previous: -0.9% https://www.dailyfx.com/economic-calendar#2020-10-20
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/0CFf4oMtiX
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.73%, while traders in EUR/USD are at opposite extremes with 69.71%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ut5iiBF1yj
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.34% 🇨🇭CHF: 0.22% 🇨🇦CAD: 0.02% 🇯🇵JPY: -0.22% 🇦🇺AUD: -0.54% 🇳🇿NZD: -0.72% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/OsdDsHNWHG
  • Heads Up:🇺🇸 Housing Starts MoM (SEP) due at 12:30 GMT (15min) Previous: -5.1% https://www.dailyfx.com/economic-calendar#2020-10-20
  • Heads Up:🇺🇸 Building Permits MoM (SEP) due at 12:30 GMT (15min) Previous: -0.9% https://www.dailyfx.com/economic-calendar#2020-10-20
  • UK PM Spokesman says the UK needs clear assurance the EU has changed stance in talks $GBP
  • Spain's health minister says after Madrid state of emergency expires, there will be 3 weeks of strict measures
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/a5t47Ew7jz
NZD/USD Technical Analysis: Downturn Brewing at Trend Top?

NZD/USD Technical Analysis: Downturn Brewing at Trend Top?

2019-12-17 06:00:00
Ilya Spivak, Head Strategist, APAC
Share:

NZD/USD Technical ANALYSIS: BEARISH

  • NZ Dollar may turn lower after showing Shooting Star candle at resistance
  • Four-hour chart reveals bearish Head and Shoulders patter, RSI divergence
  • Bearish scenario needs confirmation on a break of near-term trend support

The New Zealand Dollar has stalled after hitting resistance guiding it lower against its US counterpart since July 2017. The appearance of a dramatic-looking Shooting Star candlestick speaks to ebbing bullish conviction, which may precede a downturn.

Back-to-back support levels are clustered in the 0.6425-96 area. A daily close below its lower bound would breach the series of higher lows set from October’s swing bottom, neutralizing near-term upside pressure and setting the stage for resumption of the longer-term decline.

New Zealand Dollar vs US Dollar price chart - daily

Daily NZD/USD chart created using TradingView

Zooming in to the four-hour chart for a sense of more immediate positioning reveals what might be the makings of a Head and Shoulders (H&S) topping pattern. Negative RSI divergence speaks to diminished upward momentum, bolstering the case for a downside scenario.

Nevertheless, confirmation on a break of upward-sloping trend support is still pending. Absent that, the current setup might be seen as unattractive on risk/reward grounds by would-be sellers as NZD/USD hovers squarely at near-term support (0.6576). A test of swing low support at 0.6518 may follow if it is broken.

New Zealand Dollar vs US Dollar price chart - 4 hour

4-hour NZD/USD chart created using TradingView

NZD/USD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -6% 7% 2%
Weekly -7% -13% -11%
What does it mean for price action?
Get My Guide

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