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.

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
Subscribe
Please try again
Wall Street
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
More View more
Real Time News
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/lccPTTlvj0
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here: https://t.co/WIKdSesfkJ https://t.co/Fx0qr32xgI
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/4qxwiJsV1K
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/stMPuq0VXR
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/v6RGICQvge
NZD/USD Technical Analysis: Upswing Eyes Resistance Below 0.61

NZD/USD Technical Analysis: Upswing Eyes Resistance Below 0.61

Ilya Spivak, Head Strategist, APAC

NZD/USD Technical ANALYSIS: BEARISH

  • New Zealand Dollar eyes resistance below 0.61 again as prices rebound
  • 4-hour chart shows negative RSI divergence, warns upswing may fizzle
  • Trader sentiment studies tip bearish bias, but a pivot might be brewing

The New Zealand Dollar attempted to extend lower against its US counterpart after producing a somewhat rare Three Black Crows candlestick pattern (as expected). The move was cut short near support marked by the 23.6% Fibonacci expansion at 0.5833 however, giving way to recovery that has brought the pair back toward its near-term swing high at 0.6069.

This is a pivotal juncture. Breaking above it with confirmation on a daily closing would invalidate the latest attempt at downtrend resumption. Extension upward to retest support-turned-resistance in the 0.6197-0.6245 zone may follow. Alternatively, a turn back lower that brings NZD/USD below 0.5833 probably sees the next inflection point at 0.5690, the 38.2% Fib level.

New Zealand Dollar vs US Dollar price chart - daily

NZD/USD daily chart created using TradingView

The latter scenario finds some support in near-term positioning. The four-hour chart reveals negative RSI divergence as prices hover near resistance, hinting at ebbing upside momentum. That may set the stage for a downturn, although making the case for follow-through probably calls for a break of rising trend line support guiding the upswing over the past week.

New Zealand Dollar vs US Dollar price chart - 4 hour

NZD/USD 4-hour chart created using TradingView

NZD/USD TRADER SENTIMENT

NZD/USD Technical Analysis: Upswing Eyes Resistance Below 0.61

Retail sentiment data shows 54.48% of traders are net-long, with the long-to-short ratio at 1.20 to 1. IG Client Sentiment(IGCS) is typically used as a contrarian indicator, soretail traders being net-long suggests that NZD/USD is biased downward. The skew has narrowed a bit over the past day however. Continued evolution in this direction over the coming days may suggest that a pivot in the trend is brewing.

See the full IGCS sentiment report here.

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