The New Zealand Dollar is trading higher early Friday after posting a mixed performance the previous session. Pressuring the Kiwi on Thursday were mixed signals on the local economy. A report showed New Zealand house sales in December were the lowest for that month in seven years. Thin liquidity also triggered stop-loss selling. Providing some support was a positive outlook for U.S.-China trade relations after The Wall Street Journal wrote that the U.S. is considering a reduction in U.S. tariffs on Chinese imports although the Treasury denied the story.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="At 0251 GMT, the NZD/USD is trading .6764, up 0.0001 or +0.02%.” data-reactid=”12″>At 0251 GMT, the NZD/USD is trading .6764, up 0.0001 or +0.02%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top on January 15. A trade through .6850 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through .6591.
The minor trend is also up. The minor trend will change to down on a trade through the minor bottom at .6707. This will confirm the shift in momentum.
The main range is .6970 to .6591. Its retracement zone at .6781 to .6591 is controlling the near-term direction of the Forex pair. Consider it resistance.
The short-term range is .6591 to .6850. Its retracement zone is .6720 to .6690. Since the main trend is up, buyers are likely to come in on a test of this zone.
Daily Swing Chart Technical Forecast
The NZD/USD is currently trading inside yesterday’s range. This tends to indicate investor indecision and impending volatility.
On the upside, the first target is the main 50% level at .6781, followed by a downtrending angle at .6790. Sellers could come in on the first test of this angle. Taking it out, however, could drive the Kiwi into a series of levels at .6820, .6825 and .6835.
On the downside, the first target is yesterday’s low at .6727, followed by the short-term 50% level at .6720. If this price fails then look for the selling to extend into the minor bottom at .6707, followed by the uptrending Gann angle at .6701 and the Fibonacci level at .6690.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article was originally posted on FX Empire” data-reactid=”33″>This article was originally posted on FX Empire
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