Advertisement
Advertisement

NZD/USD Forex Technical Analysis – Testing Major Retracement Zone at .6676 to .6717

By:
James Hyerczyk
Published: Sep 26, 2018, 03:49 UTC

Based on the early price action, the direction of the NZD/USD the rest of the session is likely to be determined by trader reaction to the 50% level at .6676.

NZD/USD

The New Zealand Dollar is trading sharply higher early Wednesday despite a weaker-than-expected September trade balance. Investors are instead reacting to the improvement in business confidence in September after tumbling to near recession-like levels in August.

The trade balance came in at -1484M, worse than the -930M forecast. The previous month was also revised lower to -196M.

ANZ Bank’s headline business confidence index bounced 12 points to -38%, indicating that a net 38% of businesses expect conditions to deteriorate in the year ahead.

At 0335 GMT, the NZD/USD is trading .6676, up 0.0028 or +0.42%.

NZDUSD
Daily NZD/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. Momentum has been trending lower since the formation of the closing price reversal top at .6700 on September 21.

A trade through .6700 will negate the closing price reversal top and signal a change in trend to up.

The minor trend is up. A trade through .6630 will change the minor trend to down.

The main range is .6851 to .6500. Its retracement zone at .6676 to .6717 is resistance. This zone stopped the rally at .6700 earlier in the week.

The intermediate range is .6500 to .6700. Its retracement zone at .6600 to .6576 is the primary downside target.

The short-term range is .6700 to .6630. Its 50% level or pivot comes in at .6665. This level is controlling the direction of the NZD/USD early Wednesday.

Daily Technical Forecast

Based on the early price action, the direction of the NZD/USD the rest of the session is likely to be determined by trader reaction to the 50% level at .6676.

A sustained move over .6676 will indicate the presence of buyers. If this move generates enough upside momentum then look for buyers to take out .6700. This could trigger a spike into .6717, followed by another top at .6727 and a downtrending Gann angle at .6741.

A sustained move under .6676 will signal the presence of sellers. This should lead to a quick break into the short-term pivot at .6665.

The daily chart starts to open up under .6665 with the next targets the minor bottom at .6630 and the uptrending Gann angle at .6610.

If .6610 fails then look for the selling to extend into the short-term retracement zone at .6600 to .6576.

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.

Did you find this article useful?

Advertisement