NZD/USD Forex Technical Analysis – April 26, 2019 Forecast

The New Zealand Dollar is trading higher on Friday after posting a potentially bullish closing price reversal bottom the previous session. The move is being driven by a better-than-expected trade balance report. New Zealand’s exports also hit a record in March amid revived Chinese demand for local dairy, meat and forestry products. Position-squaring ahead of the U.S. Gross Domestic Product report on Friday is also helping to boost the Kiwi.

At 04:43 GMT, the NZD/USD is trading .6644, up 0.0018 or +0.27%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside with the formation of a closing price reversal bottom on Thursday and the subsequent confirmation earlier in the session.

A trade through .6580 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a move through .6784. This is highly unlikely, but there is room for a counter-trend rally into a retracement zone.

The short-term range is .6784 to .6580. Its retracement zone at .6682 to .6706 is the first upside target.

Daily Technical Forecast

Based on the early price action, the direction of the NZD/USD the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at .6620.

Bullish Scenario

A sustained move over .6620 will indicate the presence of buyers. If this creates enough upside momentum then look for a rally into a downtrending Gann angle at .6679. This is followed by a short-term 50% level at .6682 and another downtrending Gann angle at .6694. Overtaking these levels could drive the Kiwi into the short-term Fibonacci level at .6706.

Since the main trend is down, sellers could show up on a test of .6682 to .6706.

Bearish Scenario

Watch for sellers if the short-term retracement zone at .6682 to .6706 is tested. Taking out the uptrending Gann angle at .6620 will also indicate the presence of sellers. This could drive the NZD/USD into a pair of uptrending Gann angles at .6593 and .6587. If they fail then look for sellers to go after .6580.

Taking out .6580 will signal a resumption of the downtrend. This could trigger an acceleration to the downside since the next major targets are .6465 and .6424.