NZD/USD Forex Technical Analysis – .6581 Controlling Direction This Week

Based on last week’s close at .6588, the direction of the NZD/USD this week is likely to be determined by trader reaction to the support cluster at .6581. This is formed by a combination of an uptrending Gann angle and the short-term pivot.
James Hyerczyk
New Zealand Notes

The New Zealand Dollar closed higher last week against the U.S. Dollar. The Kiwi wasn’t strong, but the greenback was weak as traders priced in a potential rate cut by the Fed at its July 31 meeting.

This week, the direction of the New Zealand Dollar will be determined by trader reaction to the U.S. Dollar and the Reserve Bank of New Zealand (RBNZ) interest rate decision and monetary policy statement.

The RBNZ is expected to leave rates unchanged at this meeting, but it’s likely to hint at an August rate cut. Policymakers are also likely to comment on the impact of lower interest rates in Australia and the U.S., which could have an impact on the New Zealand economy.

Last week, the NZD/USD settled at .6588, up 0.0096 or +1.48%.

Weekly NZD/USD

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. However, momentum has been trending higher since the formation of the weekly closing price reversal bottom at .6481 during the week-ending May 24.

A trade through .6481 will negate the closing price reversal bottom and signal a resumption of the downtrend with main bottoms at .6424 and .6346 the next likely targets.

The minor trend is also down. A trade through .6682 will change the minor trend to up. This will reaffirm the shift in momentum to the upside.

The main range is .6424 to .6970. Its retracement zone at .6633 to .6697 is controlling the longer-term direction of the NZD/USD. This zone is resistance. It stopped the rally three weeks ago at .6682.

The intermediate range is .6939 to .6481. If the minor trend changes to up then its retracement zone at .6710 to .6764 will become the next upside target.

The short-term range is .6481 to .6682. Keep an eye on trader reaction to its 50% level or pivot this week at .6581.

Weekly Technical Forecast

Based on last week’s close at .6588, the direction of the NZD/USD this week is likely to be determined by trader reaction to the support cluster at .6581. This is formed by a combination of an uptrending Gann angle and the short-term pivot.

Bullish Scenario

A sustained move over .6581 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the main Fibonacci level at .6633, followed by the downtrending Gann angle at .6659. Since the trend is down, sellers could come in on a test of these levels. However, .6659 is also the trigger point for an acceleration to the upside with a pair of 50% levels at .6697 and .6710 the next likely upside targets.

Bearish Scenario

A sustained move under .6581 will signal the presence of sellers. This could trigger an acceleration to the downside with the next target angle coming in at .6531. This is followed by another uptrending Gann angle at .6506. This is the last potential support angle before the .6487 minor bottom and the .6481 main bottom.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US