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NZD/USD Testing Major Retracement Zone at .6710 – .6753

By:
James Hyerczyk
Published: Feb 18, 2022, 11:32 UTC

The direction of the NZD/USD on Friday will be determined by trader reaction to the 50% level at .6710.

USD/NZD

In this article:

The risk sensitive New Zealand Dollar is edging higher on Friday as risk sentiment improved after U.S. State Department said late on Thursday that Secretary of State Antony Blinken had accepted an invitation to meet with Russian Foreign Minister Sergei Lavrov late next week provided Russia does not invade Ukraine.

At 11:10 GMT, the NZD/USD is trading .6713, up 0.0021 or +0.31%.

The announcement is providing some relief for higher yield currency investors after a jittery Thursday following exchanges of fire between Kyiv’s forces and pro-Russian separatists.

Daily NZD/USD

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .6733 will signal a resumption of the uptrend. A move through .6593 will change the main trend to down.

The main range is .6891 to .6529. The NZD/USD is currently testing its retracement zone at .6710 to .6753. This zone is controlling the near-term direction of the Forex pair. It stopped the selling at .6733 on February 10.

The minor range is .6529 to .6733. Its retracement zone at .6631 to .6607 support. This zone will move up if buyers take out .6733.

Daily Swing Chart Technical Forecast

The direction of the NZD/USD on Friday will be determined by trader reaction to the 50% level at .6710.

Bullish Scenario

A sustained move over .6710 will indicate the presence of buyers. Taking out .6733 will change the main trend to up, leading to a test of the Fibonacci level at .6753. This is a potential trigger point for an acceleration to the upside with the nearest targets a minor top at .6811 and a major top at .6891.

Bearish Scenario

A sustained move under .6710 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into a new minor pivot at .6662.

Buyers could come in on a pullback into .6662, but if it fails then look for the selling to possibly extend into the retracement zone at .6631 – .6607.

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

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.

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