Business NZD/USD Technical Analysis: Key Kiwi Dollar Support at Risk

NZD/USD Technical Analysis: Key Kiwi Dollar Support at Risk

-

- Advertisment -

NZD/USD Technical ANALYSIS: BEARISH

  • New Zealand Dollar inching toward a test of 3-monh trend support
  • Confirmed breakdown may mark start of bearish trend resumption
  • Long-term chart setup seems tilted to favor a broadly bearish bias

The New Zealand Dollar is grinding lower as expected after producing a Shooting Star candlestick at bearish trend resistance set from July 2017. A break below support defining December’s month-long rise has now been followed by a breach of former resistance at 0.6636, seemingly setting the stage for a challenge of the upward-sloping barrier defining the recovery from late-September lows.

How prices behave at this barrier might prove trend-defining. If buyers manage to defend it, another foray higher to test the bounds of the long-term downtrend may follow. A break below it – with confirmation on a daily closing basis – would suggest that a corrective rise has been exhausted and set the stage for bearish resumption. A dense support block in the 0.6425-96 region follows immediately thereafter.

NZD/USD Technical Analysis: Key Kiwi Dollar Support at Risk

Daily NZD/USD chart created using TradingView

A look at longer-term positioning on the monthly chart seemingly suggests the path of least resistance favors the downside. Recent NZD/USD gains appear as a retracement after the pair broke the bounds a nearly two-decade-long advance and landed atop the long-standing 0.5914-0.6197 congestion zone. With key resistance having now held up to retest in December, the time to re-engage the trend may reasonably be at hand.

Please add a description for the image.

Monthly NZD/USD chart created using TradingView

NZD/USD TRADER SENTIMENT

NZD/USD TRADING RESOURCES:

  • Just getting started? See our beginners’ guide for FX traders
  • Having trouble with your strategy? Here’s the #1 mistake that traders make
  • Join a free live webinar and have your trading questions answered

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the Comments section below or @IlyaSpivak on Twitter

Dailyfx.com: Continue reading…

Latest news

Grey’s Anatomy recap: Who survives the accident at Joe’s Bar?

When we last left Joe’s Bar outside of Grey Sloan Memorial, a car had slammed through the brick wall, flinging debris everywhere. It was a satisfying fall finale. Who will survive? Who is critically injured? Can Meredith save the day? Did Avery’s face get injured? Shonda Rhimes answers these questions in a two-hour crossover event…

Paramore’s Hayley Williams Releases ‘Scary, Empowering’ First Single ‘Simmer’ Off Solo Album

Paramore‘s lead singer is striking out on her own. Hayley Williams has just released the first single off her debut solo album Petals for Armor, and fans can watch the rage-filled music video for “Simmer” above. “I’m so ready and so incredibly humbled to get to share this project,” Williams says in a statement. “Making…

Adam Schiff piles pressure on Republicans under fire

Senators are soon going to start seeing Adam Schiff in their sleep. The lead House impeachment manager is pressuring the handful of GOP jurors who are considering a vote to call witness and delay the acquittal that President Donald Trump craves from his impe…

Protesters Mass in Baghdad, Demanding U.S. Leave Iraq

Participants were recruited, transported by buses provided by the organizers and given signs, flags and sometimes food. The vast majority of the participants are Shiite Muslims, the main constituency of the cleric Mr. al-Sadr and the armed groups close to Ira…
- Advertisement -

The middleman: How Lev Parnas joined Team Trump and became Rudy Giuliani’s fixer in Ukraine

The state funeral for former President George H.W. Bush in 2018 featured a who's who of U.S. political heavyweights. The nation's four living former presidents and their wives were in the first row of the National Cathedral in Washington, D.C. Alongside were…

Libyan man sentenced to 19 years in deadly Benghazi attack

A Libyan man convicted in connection with the deadly 2012 attack on an American diplomatic compound in Benghazi was sentenced Thursday to 19 years in prison. Mustafa al-Imam, 47, was sentenced to 236 months after being convicted by a jury in June on charges …

Must read

- Advertisement -

You might also likeRELATED
Recommended to you