Calm Tone as NZD/USD Hovers Above .6669 – .6636 Support Zone

The New Zealand Dollar is trading sharply lower early Monday but higher than the opening after a number of moves against Russia over the weekend upset the stability in the global financial markets, encouraging investors to trim positions in riskier currencies.

At 22:32 GMT, the NZD/USD is trading .6691, down 0.0054 or -0.80%. This is up from an earlier low of .6674.

A decision by Western allies on Saturday to block certain Russian banks from the SWIFT payments system is helping to drive investors into the safe-haven markets including the U.S. Dollar, and out of riskier investments like stocks and the Australian and New Zealand Dollars.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .6631 will signal a resumption of the downtrend. A move through the main bottom at .6593 will reaffirm the downtrend. The main trend will change to up on a trade through .6810.

The short-term range is .6529 to .6810. Its retracement zone at .6669 to .6636 is support and a potential trigger point for an acceleration to the downside.

The main range is .6891 to .6529. Its retracement zone at .6710 to .6753 is resistance and a potential trigger point for an acceleration to the upside.

Daily Swing Chart Technical Forecast

The direction of the NZD/USD early Monday is likely to be determined by trader reaction to .6691.

Bearish Scenario

A sustained move under .6691 will indicate the presence of sellers. The first downside target is .6669. If this level fails then look for the selling to possibly extend into the short-term Fibonacci level at .6636, followed closely by .6631.

Last week’s low at .6631 is a potential trigger point for an acceleration into a pair of main bottoms at .6593 and .6590.

Bullish Scenario

A sustained move over .6691 will signal the presence of counter-trend buyers. This could trigger a quick rally into the main 50% level at .6710.

Since the main trend is down, sellers could come in on the first test of .6710. Overtaking it, however, could trigger a surge into the main Fibonacci level at .6753. This is a potential trigger point for an acceleration to the upside with .6810 the next major target.