NZD/USD Forex Technical Analysis – Main Trend Changes to Down; Successfully Tested 50% at .6607

Based on the earlier price action, the direction of the NZD/USD into the close is likely to be determined by trader reaction to the short-term 50% level at .6607. The late session intraday rally could stop at .6637 to .6647.
James Hyerczyk
New Zealand Notes

The NZD/USD plunged on Friday before stopping at a short-term 50% level. The selling was fueled by better-than-expected non-farm payrolls data, which helped improve the entire jobs report. The news dampened the chances of a Fed rate cut at the end of July enough to spike the benchmark 10-year U.S. Treasury yield back over 2%. This made the U.S. Dollar a more attractive investment, while encouraging New Zealand Dollar buyers to lighten up on the long side and take profits after a nearly three-week rally.

At 19:58 GMT, the NZD/USD is trading .6625, down 0.0062 or -0.93%.


Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through .6656 changed the main trend to down. A trade through .6720 and .6727 will change the main trend to up.

The short-term range is .6487 to .6727. Its retracement zone at .6607 to .6579 was the primary downside target. A test of this zone at .6602 may have attracted new buyers, helping to put in the low for the session.

On the upside, the resistance is the main retracement zone at .6710 to .6764. This stopped the rally on July 1 at .6727 and on July 4 at .6720.

Daily Technical Forecast

Based on the earlier price action, the direction of the NZD/USD into the close is likely to be determined by trader reaction to the short-term 50% level at .6607.

Bullish Scenario

Holding .6607 near the close will indicate the presence of buyers. This could lead to a test of an uptrending Gann angle at .6637, followed closely by a downtrending Gann angle at .6647. Since the main trend is down, this should stop the intraday rally. However, overtaking .6647 will indicate the buying is strengthening.

Bearish Scenario

The late session intraday rally could stop at .6637 to .6647. However, the trigger point for an acceleration to the downside is the 50% level at .6607. If taken out late in the session, don’t be surprised by a break into the short-term Fibonacci level at .6579.

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
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.
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.