FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
44,774,935Confirmed
1,179,232Deaths
32,727,721Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
NZD/USD

The New Zealand Dollar finished lower on Thursday following a volatile two-sided trading session. ECB policy decisions and comments from a high ranking central bank official as well as demand for risky assets drove the currency higher early in the session. However, the Kiwi turned lower later in the session as U.S. equity markets moved into negative territory, increasing the U.S. Dollar’s appeal as a safe-haven asset.

At 20:57 GMT, the NZD/USD is trading .6650, down 0.0035 or -0.52%. This is down from a high of .6709.

Daily NZD/USD

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .6789 will signal a resumption of the uptrend following a five day setback. The main trend will change to down on a move through .6489.

The minor trend is also up. A trade through .6601 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is .6489 to .6789. Its retracement zone at .6639 to .6604 is support. This zone stopped the selling at .6601 on Wednesday.

The minor range is .6789 to .6601. Its retracement zone at .6695 to .6717 is resistance. This zone stopped the buying at .6709 on Thursday.

Advertisement

Short-Term Outlook

Thursday’s price action solidified the relationship between the higher-yielding New Zealand Dollar and the stock market. The two risky assets are moving nearly lock-step with each other.

Based on Thursday’s price action, the direction of the NZD/USD on Friday is likely to be determined by trader reaction to the short-term 50% level at .6639.

Bearish Scenario

A sustained move under .6639 will indicate the presence of sellers. If this move creates enough downside momentum then look for a break into the short-term Fibonacci level at .6604, followed by the minor bottom at .6601.

The daily chart shows there is plenty of room to the downside with .6489 the next major target. Basically, .6601 is a potential trigger point for an acceleration to the downside.

Bullish Scenario

A sustained move over .6639 will signal the presence of buyers. This will also signal a successful defense of the .6639 to .6604 retracement zone as well as the minor bottom at .6601.

If this move is able to generate enough upside momentum then look for the rally to possibly extend into the minor retracement zone at .6695 to .6717.

Side Notes

Watch the NZD/USD chart for support and resistance, but you may want to use the movement in the S&P 500 Index as your trigger. Think set-up on the NZD/USD chart and trigger on the S&P 500 Index chart.

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

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US