NZD/USD Forex Technical Analysis – Weakens Under .6768, Strengthens Over .6785

The New Zealand Dollar is trading lower against its U.S. counterpart early Wednesday as the rally in riskier asset classes began to lose traction.

The Kiwi is giving up some of its gains from the day before, as a rally in higher-yielding assets began to lose steam, though volume is lower and the price action is muted as traders started to head out for the holidays.

At 05:30 GMT, the NZD/USD is trading .6741, down 0.0031 or -0.46%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .6834 will reaffirm the uptrend. A move through .6702 will change the main trend to down.

The first minor range is .6834 to .6702. Its pivot at .6768 is resistance. This level rejected Tuesday’s rally.

The second minor pivot resistance is .6785. A third minor pivot resistance level comes in at .6878.

Daily Swing Chart Technical Forecast

The direction of the NZD/USD on Wednesday is likely to be determined by trader reaction to .6768.

Bearish Scenario

A sustained move under .6768 will indicate the presence of sellers. The first downside target is .6738.

Buyers could come in on the first test of .6738. If it fails, however, we could see a sharp break into .6702. This is a potential trigger point for an acceleration to the downside with the November 2, 2020 main bottom at .6589 the next likely target.

Bullish Scenario

A sustained move over .6768 will signal the presence of buyers. This could lead to a quick test of .6785.

Overtaking .6785 will indicate the buying is getting stronger. This could trigger an acceleration into the main top at .6834. Taking out this level will signal a resumption of the uptrend with the next targets .6868 and .6878.