NZD/USD Forex Technical Analysis – No Major Resistance Until July 19 Main Top at .6791A trade through .6638 will signal a resumption of the uptrend on Tuesday. If this occurs then all buyers will have to worry about is a close under Monday’s settlement at .6637. This move will form a potentially bearish closing price reversal top.
The New Zealand Dollar rose on Monday as it continued to be buoyed by the imminent signing of a preliminary trade deal between the United States and China.
The catalysts behind the Kiwi’s strength were a combination of U.S. President Donald Trump tweeting that the trade deal will be signed “very soon” and China’s announcement that it is reducing import tariffs on 859 items from January 1.
Furthermore, while the market has another rate cut from the Reserve Bank of Australia (RBA) priced in for February, it isn’t pricing in another cut from the Reserve Bank of New Zealand (RBNZ).
On Monday, the NZD/USD settled at .6637, up 0.0033 or +0.50%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Monday when buyers nudged through the previous main top at .6636.
The main bottom is .6554. A trade through this bottom will change the main trend to down.
The main range is .6791 to .6204. The NZD/USD is currently trading on the strong side of its retracement zone at .6567 to .6498. Besides the trend indicator, this move is generating strong upside momentum.
The short-term range is .6204 to .6638. If the main trend changes to down then its retracement zone at .6421 to .6370 will become the primary downside target.
Daily Swing Chart Technical Forecast
A trade through .6638 will signal a resumption of the uptrend on Tuesday. If this occurs then all buyers will have to worry about is a close under Monday’s settlement at .6637. This move will form a potentially bearish closing price reversal top.
The daily chart shows there is plenty of room to the upside with no visible resistance until the July 19 main top at .6791.
On the downside, the first support is the main Fibonacci level at .6567, followed closely by the main bottom at .6554.