Advertisement
Advertisement

NZD/USD Forex Technical Analysis – August 22, 2018 Forecast

By:
James Hyerczyk
Published: Aug 22, 2018, 04:46 UTC

Based on the early price action, the direction of the NZD/USD today is likely to be determined by trader reaction to the 50% level at .6697.

New Zealand Dollars

The New Zealand Dollar is surging early Wednesday on the back of better-than-expected domestic economic data. New Zealand Retail Sales came in at 1.1%, higher than the 0.4% forecast and 0.3% previous quarter. Core Retail Sales also jumped by 1.4% last quarter, well above the 0.8% estimate and 0.6% previous read.

At 0438 GMT, the NZD/USD is trading .6703, up 0.0008 or +0.12%.

NZDUSD
Daily NZD/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. The main trend will change to up on a trade through .6851. A move through .6544 will signal a resumption of the downtrend.

The minor trend is up. It changed to up last week when buyers took out the minor top at .6611. This move also shifted momentum to the upside.

The main range is .6851 to .6544. Its retracement zone at .6697 to .6734 is currently being tested. A major Fibonacci level at .6723 is inside this range, making it a valid upside target. Since the main trend is down, sellers could come in on a test of this zone.

Daily Technical Forecast

Based on the early price action, the direction of the NZD/USD today is likely to be determined by trader reaction to the 50% level at .6697.

A sustained move over .6697 will indicate the presence of buyers. They face an early labored rally with resistance levels at .6723 and .6734. Overtaking, .6734, however, could spike the market into a downtrending Gann angle at .6756.

A sustained move under .6697 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside with the next target angle coming in at .6644. This Gann angle provided support earlier in the session.

The NZD/USD could collapse if .6644 fails.

Basically, the Forex pair could continue to strengthen on a sustained move over .6734 and weaken on a sustained move under .6697.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement