Yahoo Finance NZD/USD Forex Technical Analysis – Strengthens Over .7306, Weakens Under .7275
The New Zealand Dollar closed lower last week, pressured by rising U.S. interest rates and hawkish Fed minutes. This week’s price action is expected to be impacted by several U.S. economic reports including Core Durable Goods Orders, Preliminary GDP and ISM Manufacturing PMI. The biggest impact on prices should come from the testimony of Fed Chair Jerome Powell before Congressional committees on Tuesday and Thursday.
The NZD/USD settled the week at .7290, down 0.0098 or -1.32%.
Weekly Technical Analysis
The main trend is up according to the weekly swing chart. A trade through .7437 will signal a resumption of the uptrend. This could create the upside momentum needed to challenge the next main top at .7558.
The minor trend is also up. A move through .7175 will change the minor trend to down.
The main range is .6780 to .7437. Its retracement zone at .7108 to .7031 is the primary downside target. This the main trend is up, buyers are likely to come in on a test of this zone.
The short-term range is .7175 to .7437. Its retracement zone at .7306 to .7275 is currently being tested. Trader reaction to this zone will determine the near-term direction of the NZD/USD.
Weekly Technical Forecast
Based on last week’s close at .7290, the direction of the NZD/USD is likely to be determined by trader reaction to .7306 to .7275.
A sustained move over .7306 will signal the presence of buyers. If this move creates enough upside momentum, we could see a rally into the uptrending Gann angle at .7380.
Overtaking .7380 will put the Forex pair in a bullish position with .7437 the next target.
A sustained move under .7275 will indicate the presence of sellers. The daily chart is wide open under this level with .7175 the next likely target. This is followed by the major 50% level at .7108 and an uptrending Gann angle at .7080.
This article was originally posted on FX Empire
