NZD/USD Rally Faces First Test

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New Zealand Dollar Technical Price Outlook: NZD/USD Weekly Trade Levels

  • New Zealand Dollarup to date technical commerce ranges – Weekly Chart
  • NZD/USD restoration targets key pivot / resistance zone – threat for near-term exhaustion
  • Resistance 6898-6941 (key), 7020 – assist 6772, 6702/33 (key)

The New Zealand Dollar surged greater than 1.5% in opposition to the US Dollar this week with NZD/USD defending a key assist zone examined into the shut of commerce final 12 months. The focus is on a variety of resistance simply increased with the rapid advance weak into the 69-handle. These are the up to date targets and invalidation ranges that matter on the NZD/USD weekly value chart. Review my newest Strategy Webinar for an in-depth breakdown of this Kiwicommerce setup and extra.

New Zealand Dollar Price Chart – NZD/USD Weekly

Chart Prepared by Michael Boutros, Technical Strategist; NZD/USD on Tradingview

Notes: The New Zealand Dollar rebounded off confluent assist into the shut of the 12 months at 6702/33– a area outlined by the 38.2% Fibonacciretracement of the broader 2020 advance and the 2020- yearly open. This stage was examined as soon as once more into the beginning of the 12 months earlier than rebounding increased with Kiwi now approaching weekly resistance on the 38.2% retracement of the October sell-off / 2019 swing excessive at 6898-6941. We’re searching for potential inflection on stretch into this zone IF reached for steering.

A topside breach / shut above would counsel a bigger correction could also be underway with such a situation exposing subsequent resistance targets on the 61.8% retracement at 7020 with the 52-week shifting common simply increased at 7048– each areas of curiosity for potential topside exhaustion IF reached. Ultimately, a break beneath the 2021 lows is required to threaten resumption of the broader downtrend in direction of the decrease parallel (at the moment ~6660s) and the 100% extension of the 2021 decline at 6559.

Bottom line: The New-Zealand Dollar restoration off downtrend assist is approaching an inflection vary across the 69-handle. From a buying and selling standpoint, an excellent zone to scale back long-exposure / elevate protecting stops – be looking out for potential exhaustion up right here. Losses ought to be restricted to this week’s open at 6772 IF value is certainly heading increased with a topside breach wanted to counsel a extra important lows was registered final month. I’ll publish an up to date New Zealand Dollar Price Outlook as soon as we get additional readability on the near-term Kiwi technical commerce ranges.

For a whole breakdown of Michael’s buying and selling technique, assessment his Foundations of Technical Analysis collection on Building a Trading Strategy

New Zealand Dollar Trader Sentiment – NZD/USD Price Chart

New Zealand Dollar Trader Sentiment - NZD/USD Price Chart - Kiwi Retail Positioning - Technical Outlook

  • A abstract of IG Client Sentiment reveals merchants are net-long NZD/USD – the ratio stands at +1.79 (64.13% of merchants are lengthy) – usually bearish studying
  • Long positions are 1.56% decrease than yesterday and 5.72% decrease from final week
  • Short positions are 2.75% decrease than yesterday and a couple of.42% increased from final week
  • We usually take a contrarian view to crowd sentiment, and the actual fact merchants are net-long suggests NZD/USD costs could proceed to fall. Traders are extra net-long than yesterday however much less net-long from final week. The mixture of present positioning and up to date adjustments provides us an extra blended NZD/USD buying and selling bias from a sentiment standpoint.

Key New Zealand / US Economic Releases

Key New Zealand / US Economic Releases - NZD/USD Weekly Event Risk

Economic Calendarnewest financial developments and upcoming occasion threat.

Previous Weekly Technical Charts

— Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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