Yahoo Finance NZD/USD Forex Technical Analysis – February 22, 2019 Forecast
The New Zealand Dollar is trading slightly higher on Friday as investors try to claw back some of yesterday’s steep loss. On Thursday, the Kiwi got caught up in a volatile Aussie session. Sympathy selling was fueled by the news that Westpac Bank now expects the Reserve Bank of Australia to cut rates twice this year. It was driven further down on news that China’s Dalian port will ban coal imports.
At 05:40 GMT, the NZD/USD is trading .6807, up 0.0005 or +0.08%.
Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of a closing price reversal top at .6894 on February 18. Furthermore, the NZD/USD has also formed a secondary lower top. This is a further indication of building downside pressure.
A trade through .6894 will negate the closing price reversal top. This will also signal a resumption of the uptrend. A trade through .6719 will change the main trend to down.
The major retracement zone is .6780 to .6825. This zone is controlling the longer-term direction of the NZD/USD. The Forex pair is currently trading inside this zone.
The main range is .6592 to .6943. Its retracement zone at .6767 to .6726 is the primary downside target.
Daily Technical Forecast
Based on the early price action, the direction of the NZD/USD on Friday is likely to be determined by trader reaction to a pair of Gann angles at .6814 and .6799.
Bullish Scenario
Holding .6799 will indicate the presence of buyers, however, a breakout over the downtrending angle at .6814 will indicate the buying is getting stronger. This could trigger an acceleration to the upside. The first target is .6825.
Overtaking .6825 could fuel another acceleration to the upside with a downtrending Gann angle at .6854 the next upside target.
Bearish Scenario
The inability to overcome .6814 will signal the presence of sellers. However, the trigger point for an acceleration to the downside is the uptrending Gann angle at .6799.
Taking out .6799 could trigger a break into a 50% level at .6780, followed by another uptrending Gann angle at .6772 and another 50% level at .6767.
The key support angle is at .6759. If this fails, the NZD/USD could plunge into .6726. A trade through .6719 will change the main trend to down. This should extend the losses.
This article was originally posted on FX Empire
