NZD/USD Forex Technical Analysis – Confirmation of Minor Reversal Top Could Drive Kiwi into .7027 – .7009The direction of the NZD/USD into the close will be determined by trader reaction to .7083.
The New Zealand Dollar is trading slightly higher late in the session on Friday after giving back most of its earlier gains. The Kiwi began its retreat after a jump in 10-year U.S. Treasury yields. The currency rose earlier in the session to its highest level in more than a week after the Commerce Department reported core personal consumption expenditures price index rose 3.4% in May from a year earlier, as expected.
At 18:13 GMT, the NZD/USD is trading .7063, up 0.0003 or +0.04%.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
The U.S. Dollar was also pressured early in the U.S. session after data showed that U.S. consumer spending was flat in May. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, held steady following an upwardly revised 0.9% jump in April. Economists polled by Reuters had forecast consumer spending rising 0.4%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through .7316 will change the main trend to up. A move through .6923 will signal a resumption of the downtrend.
The minor trend is also down. A trade through .7243 will change the minor trend to up. This will also shift momentum to the upside.
The main support is a retracement zone at .7027 to .6924. This zone stopped the recent sell-off.
On the upside, the first 50% resistance level at .7083 helped stop the rally earlier in the session. The short-term range is .7316 to .6923. Its retracement zone at .7120 to .7166 is the next potential resistance area.
Daily Swing Chart Technical Forecast
The direction of the NZD/USD into the close will be determined by trader reaction to .7083.
A sustained move under .7083 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into .7027 to .7009.
A sustained move over .7083 will signal the presence of buyers. The first upside target is the intraday high at .7095, followed by .7120 to .7166.
It looks as if the NZD/USD is forming a potentially bearish secondary lower top. This could lead to a test of the minor pivot at .7009. This move will be critical to the structure of the chart pattern. Aggressive counter-trend buyers are likely to come in on a test of this level. They are going to try to form a secondary higher bottom. Sellers are going to try to take out .7009 in the hopes it leads to a confirmation of the down trend.