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NZD/USD Forex Technical Analysis – Slightly Lower as Investors Monitor US Elections Results

By:
James Hyerczyk
Updated: Nov 9, 2022, 03:37 UTC

Trading on Wednesday may be impacted by the elections results, the direction of U.S. Treasury yields and risk sentiment.

NZD/USD

In this article:

The New Zealand Dollar is inching lower against the U.S. Dollar on Wednesday after reaching its highest level since September 19 the previous session. Yesterday’s strong rally was fueled by profit-taking as traders awaited the outcome of Tuesday’s U.S. mid-term elections, which will determine control of Congress.

Republicans are expected to take control of the House and possibly the Senate, although the final results may not be known for days or even weeks.

At 03:10 GMT, the NZD/USD is trading .5956, down 0.0002 or -0.04%.

Traders also continued to look ahead to Thursday’s report on consumer price inflation, as the data could have a significant impact on the outlook for interest rates. Economists expect a modest slowdown in the pace of rate hikes.

Trading on Wednesday may be impacted by reaction to the elections results. The direction of U.S. Treasury yields and risk sentiment could also influence the trade.

Daily NZD/USD

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Tuesday when buyers took out the previous main top at .5942. A trade through .5741 will change the main trend to down.

On the upside, the nearest resistance is a long-term 50% level at .5991. This is followed by another resistance level at .6232.

On the downside, the first support is a 50% level at .5870, followed by a pair of 50% levels at .5837 and .5756.

Daily Swing Chart Technical Forecast

Trader reaction to .5958 is likely to determine the direction of the NZD/USD on Wednesday.

Bullish Scenario

A sustained move over .5958 will indicate the presence of buyers. If this generates enough upside momentum then look for a surge into the 50% level at .5991, followed by a resistance cluster at .6000 – .6002.

The minor top at .6026 is a potential trigger point for an acceleration to the upside with .6162 the next target.

Bearish Scenario

A sustained move under .6026 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into a pair of 50% levels at .5870 and .5837.

For a look at all of today’s economic events, check out our economic calendar.

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.

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