The New Zealand Dollar is trading marginally lower on Wednesday while remaining in a state of heightened volatility as traders continue to react to the doom and gloom headlines about the impact of the coronavirus. Traders are saying they are at the mercy of the headlines and ongoing updates from countries as to how they are handling the crisis.
At 05:50 GMT, the NZD/USD is trading .5944, down 0.0021 or -0.35%.
New Zealand’s government, which last week ordered the nation to lockdown for at least four weeks, continues to announce further measures and to more clearly define existing steps it has taken to cushion the economy from the efforts to stop the spread of the virus.
Daily Technical Analysis
The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through .6448 will change the main trend to up. A move through .5469 will signal a resumption of the downtrend.
The minor trend is up. This is controlling the momentum. A trade through .5778 will change the minor trend to down. This will shift the momentum to the downside.
The main range is .6448 to .5469. Its retracement zone at .5958 to .6074 is acting like resistance.
The short-term range is .5469 to .6070. Its retracement zone at .5769 to .5698 is the nearest downside target area.
The near-term direction of the NZD/USD will be determined by trader reaction to the 50% level at .5958 and the Fibonacci level at .6074.
A sustained move under .5958 will indicate the presence of sellers. Taking out this level could trigger an acceleration to the downside with the first target an uptrending Gann angle at .5829, followed by the short-term retracement zone at .5769 to .5698.
Overtaking the Fibonacci level at .6074 will signal the presence of buyers. This could trigger a breakout to the upside with the first target angle coming in at .6276. This is the last major resistance angle before the .6448 main top.
This article was originally posted on FX Empire
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