NZD/USD Forex Technical Analysis – Strengthens Over .7027, Weakens Under .6995The direction of the NZD/USD early Monday is likely to be determined by trader reaction to .7027.
The New Zealand Dollar was pressured on Friday by higher-than-expected U.S. producer prices. The news drove up U.S. Treasury yields, which made the U.S. Dollar a more attractive investment. Kiwi traders also had mixed feelings about the strength of the economy. Earlier in the week, the Preliminary ANZ Business Confidence report came in at -8.4, worse than previously revised number at -4.1.
On Friday, the NZD/USD settled at .7035, down 0.0026 or -0.37%.
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Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through .7070 will signal a resumption of the uptrend. The main trend changes to down on a move through .6945.
The minor range is .6943 to .7070. Its 50% level at .6995 is support.
The main range is .6589 to .7465. Traders built a support base at .6943 and .6945 inside its retracement zone at .7027 to .6934.
The short-term range is .7270 to .6943. Its retracement zone at .7107 to .7145 is potential resistance.
Daily Swing Chart Technical Forecast
The direction of the NZD/USD early Monday is likely to be determined by trader reaction to .7027.
A sustained move over .7027 will indicate the presence of buyers. This could trigger a surge into .7070. Taking out this level will indicate the buying is getting stronger with .7107 to .7145 the next likely upside target area.
A sustained move under .7027 will signal the presence of sellers. The first downside target is .6995. If this level fails then look for the selling to possibly extend into the pair of bottoms at .6945 to .6943, followed by the main Fibonacci level at .6924.
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