New Zealand markets closed
  • NZX 50

    12,639.83
    +37.81 (+0.30%)
     
  • NZD/USD

    0.7027
    +0.0022 (+0.31%)
     
  • NZD/EUR

    0.5867
    -0.0009 (-0.16%)
     
  • ALL ORDS

    6,816.80
    -32.00 (-0.47%)
     
  • ASX 200

    6,601.10
    -35.30 (-0.53%)
     
  • OIL

    45.53
    -0.18 (-0.39%)
     
  • GOLD

    1,788.10
    -23.10 (-1.28%)
     
  • NASDAQ

    12,258.21
    +106.00 (+0.87%)
     
  • FTSE

    6,367.58
    +4.65 (+0.07%)
     
  • Dow Jones

    29,910.37
    +37.90 (+0.13%)
     
  • DAX

    13,335.68
    +49.11 (+0.37%)
     
  • Hang Seng

    26,894.68
    +75.23 (+0.28%)
     
  • NIKKEI 225

    26,644.71
    +107.40 (+0.40%)
     
  • NZD/JPY

    73.1320
    +0.1400 (+0.19%)
     

NZD/USD Forex Technical Analysis – If .6515 Fails, Look for Selling to Extend into .6497 to .6485

James Hyerczyk

The New Zealand Dollar is trading lower for a third straight session on Wednesday as traders continue to take profits following the Kiwi’s inability to smash through a key technical retracement level at .6567. The price action suggests bullish traders are willing to let the currency retreat into a value zone where they can regroup before taking another run at the resistance level and the last top at .6576. Essentially, given the uncertainty over the U.S.-China trade deal, traders are reluctant to buy strength at current price levels.

At 06:34 GMT, the NZD/USD is trading .6529, down 0.0017 or -0.25%.

Daily NZD/USD
Daily NZD/USD

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through .6576 will signal a resumption of the uptrend. The main trend will change to down on a move through .6395. This is highly unlikely. However, there is room for a normal 50% to 61.8% retracement of the last rally.

The market is currently trading inside the longer-term retracement zone at .6497 to .6567.

The short-term range is .6395 to .6576. Its retracement zone at .6485 to .6464 is a value zone and primary downside target. Since the main trend is down, I expect to see buyers show up on a test of this area.

Daily Technical Forecast

Based on the early price action and the current price at .6529, the direction of the NZD/USD the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at .6546.

Bearish Scenario

A sustained move under .6546 will indicate the presence of sellers. The first downside target is a pair of Gann angles at .6516 and .6515. Watch for a technical bounce.

If .6515 fails as support then look for a break into the major 50% level at .6497, followed by the short-term 50% level at .6485.

Bullish Scenario

A sustained move over .6546 will signal the return of buyers. If this move is able to generate enough upside momentum then we could see a rally into a Gann angle at .6561, the major Fibonacci level at .6567, a downtrending Gann angle at .6569 and the main top at .6576.

This article was originally posted on FX Empire

More From FXEMPIRE: