NZD/USD Forex Technical Analysis – Strengthens Over .7027, Weakens Under .6924

The New Zealand Dollar finished lower on Wednesday on thin pre-holiday trading. After squaring positions for the month/quarter, the price action suggested the major banks and institutions may have started to move to the sidelines ahead of the bank holiday on Friday.

On Wednesday, the NZD/USD settled at .6982, down 0.0002 or -0.03%.

The Kiwi was also pressured as investors bet fiscal stimulus and aggressive vaccinations will help the United States grow faster and lead the global economy’s recovery.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. Taking out .6943 will reaffirm the downtrend. The main trend will change to up on a trade through .7270. If sellers take out .6963 on Thursday then .7034 will become the new main top.

The minor trend is currently trending lower. A trade through .7034 will change the minor trend to up. This will shift momentum to the upside.

The minor trend is .6943 to .7034. The market closed on the weak side of its pivot at .6989.

The NZD/USD is also trading inside the main retracement zone at .7027 to .6924. This zone is controlling the near-term direction of the Forex pair.

The short-term range is .7270 to .6943.  If the minor trend changes to up then look for the rally to possibly extend into its 50% level at .7107.

Daily Swing Chart Technical Forecast

The direction of the NZD/USD on Thursday is likely to be determined by trader reaction to .6989.

Bearish Scenario

A sustained move under .6988 will indicate the presence of sellers. This could trigger a move into the main bottom at .6943, followed by the Fibonacci level at .6924 and the November 23, 2020 main bottom at .6897. The latter is a potential trigger point for an acceleration to the downside with the November 13, 2020 main bottom at .6811 the next major target.

Bullish Scenario

A sustained move over .6989 will signal the presence of buyers. This could trigger a surge into .7027, followed by .7034. Taking out this level could trigger an acceleration to the upside with the short-term pivot at .7107 the next major upside target.

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