Skip to Content
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.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Technical Focus: New Zealand Dollar Views

Technical Focus: New Zealand Dollar Views

Jamie Saettele, CMT, Sr. Technical Strategist

Share:

Looking for ideas and forecasts? Visit the DailyFX guides and forecasts page. Also, check out the webinar schedule.

Are you positioned with the crowd? Check the IG Client Sentiment page to find out.

Current New Zealand Dollar thoughts are mixed. I like how NZD/USD has responded to parallel supports twice in the last month (March 9, 10, 14 and April 10, 12) and commitments of traders data (COT) indicates the most extreme ownership profile since July 2015 (large speculative short position and large commercial long position). The support reactions and COT position indicate that Kiwi is in a position to accept an advance but the timing is unclear. Price can stay low and carve a base for a bit longer. If price takes out .7090 (3/21 high) then time for the Bird to fly. Until then, range is the name of the game…probably between .7040 and .6950.

EUR/NZD just ‘looks’ bullish (check out a chart here), which probably doesn’t jive with a bullish NZD/USD (probably because it’s possible that both Euro and Kiwi outperform USD and Euro outperforms Kiwi). Reasons for EUR/NZD bullishness include impulsive (5 waves) action from the 2015 low and corrective (3 waves) action from the 2015 high, impulsive (5 waves) action from the YTD low and corrective (3 waves) action from the YTD high, and simply where the cross found low this week (top side of former corrective channel resistance, lows from 2016 (July and September), and 3 pips below the year open price).

AUD/NZD may have made its next low in a bottoming pattern today (daily key reversal). The cross has been trading at the bottom of its historical range since 2014 and recent action at internal parallels have confirmed a new bullish angle.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES