FXEMPIRE
All
Ad
Advertisement
Advertisement
James Hyerczyk
Add to Bookmarks
NZD/USD

The New Zealand Dollar edged higher on Wednesday as the prospects of aggressive fiscal stimulus in the United States bolstered the global outlook, while economic data out of Australia remained mostly positive, helping to underpin the Kiwi.

At 09:53 GMT, the NZD/USD is trading .7160, up 0.0043 or +0.60%.

Advertisement
Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Sentiment was supported by a declaration from Janet Yellen, U.S. President-elect Joe Biden’s nominee for Treasury Secretary, that the government had to “act big” on stimulus.

According to Reuters, a surge in debt-funded spending would be positive for the global economy and commodity prices, while more money-printing could put pressure on the U.S. Dollar.

Commodities saw the benefit with oil prices climbing anew, while an auction of dairy, New Zealand’s biggest export earner, produced a sharp 4.8% rise in prices.

Daily NZD/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7096 will signal a resumption of the downtrend. The main trend will change to up on a move through .7240.

The short-term range is .7003 to .7316. The NZD/USD is currently straddling its retracement zone at .7122 to .7160.

The minor range is .7316 to .7096. Its retracement zone at .7206 to .7232 is a potential upside target and resistance zone.

The main range is .6589 to .7316. If the downtrend resumes then its retracement zone at .6952 to .6867 will become the primary downside target area.

Advertisement

Daily Swing Chart Technical Forecast

The early price action suggests the Fibonacci level at .7122 is controlling the direction of the NZD/USD.

Bullish Scenario

A sustained move over .7123 will indicate the presence of buyers. This could trigger a quick move into .7160. Taking out this level could trigger an acceleration to the upside with the next target clustered at .7206, .7232 and .7240.

Bearish Scenario

A sustained move under .7122 will signal the presence of sellers. This could trigger a break into .7096.

Taking out .7096 will reaffirm the downtrend. If this move generates enough downside momentum then look for a possible acceleration into the next main bottom at .7003.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker