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NZD/USD Forex Technical Analysis – Still Encountering Sellers at .6567 Fibonacci Level

James Hyerczyk

The New Zealand Dollar is trading higher on Tuesday after reversing earlier weakness. A weaker U.S. Dollar is providing some support as well as slightly lower Treasury yields and higher demand for risky assets.

Although there hasn’t been any domestic data on Tuesday, traders are still supporting the Kiwi on the thought the Reserve Bank of New Zealand (RBNZ) will delay its next rate cut until after the previously predicted February 2020.

At 07:54 GMT, the NZD/USD is trading .6564, up 0.0015 or +0.23%.


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. However, this is highly unlikely. Nonetheless, the Forex pair is up 11 sessions since its last main bottom, which puts in inside the window of time for a potentially bearish closing price reversal top.

The minor trend is also up. A trade through .6540 will change the minor trend to down. This will also shift momentum to the downside.

The main range is .6791 to .6204. Its retracement zone at .6497 to .6567 is controlling the longer-term direction of the NZD/USD.


Daily Technical Forecast

Based on the early price action, the direction of the NZD/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the main Fibonacci level at .6567.

Bullish Scenario

A sustained move over .6567 will indicate the presence of buyers. This could trigger an acceleration to the upside with the nearest target a steep uptrending Gann angle at .6615. Crossing to the strong side of this angle will put the NZD/USD in an extremely bullish position.

Bearish Scenario

A sustained move under .6567 will signal the presence of sellers. This could trigger a retest of the minor bottom at .6540 and the long-term downtrending Gann angle at .6536.

Look for an acceleration to the downside if .6536 fails as support. This could trigger a move into the uptrending Gann angle at .6505, followed by the main 50% level at .6497.

This article was originally posted on FX Empire