Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk
New Zealand Kiwi

The New Zealand Dollar is trading lower early Wednesday as the U.S. Dollar rose in reaction to news that U.S. trade negotiators will head to China to recommence trade talks. U.S. trade negotiators are planning to head to China for face-to-face talks as the two economic powerhouses try to strike a deal, sources told CNBC.

At 04:23 GMT, the NZD/USD is trading .6696, down 0.0008 or -0.13%.

The U.S. Dollar was also lifted after the Trump administration on Tuesday reached a deal with lawmakers to lift government borrowing limits. Analysts said that the move would increase U.S. borrowing, which would tighten the supply of money in the country’s banking system. This would be supportive for the greenback.

In other news, New Zealand’s June trade surplus was wider than expected as exports were bolstered by logs and imports fell to their lowest level in 16 months.


Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of a closing price reversal top at .6791 on July 19.

A trade through .6791 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through .6583.

The main range is .6939 to .6481. Its retracement zone at .6710 to .6764 is resistance. This zone is also controlling the longer-term direction of the NZD/USD.

The short-term range is .6583 to .6791. Its retracement zone at .6687 to .6662 is the next downside target. Since the main trend is up, look for buyers to come in on the first test of this area.

The intermediate range is .6481 to .6791. If the short-term retracement zone fails as support then look for the selling to extend into its retracement zone at .6636 to .6599.


Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the NZD/USD is likely to be determined by trader reaction to the short-term 50% level at .6687.

Bullish Scenario

A sustained move over .6687 will indicate the presence of buyers. The next upside target is .6710. This is a potential trigger point for an acceleration to the upside with the next target a minor pivot at .6742. This is followed by .6764.

Bearish Scenario

A sustained move under .6687 will signal the presence of sellers. This could trigger a further break into .6662. This is followed by .6636. If this level fails then look for the selling to possibly extend into .6599 then the main bottom at .6583.

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

Trade With A Regulated Broker

  • Your capital is at risk