Technical Analysis

NZDUSD trends higher and looks to test September highs

The September high for the  NZDUSD comes in at 0.71694

The NZDUSD has been trending sharply to the upside today, continuing its surge over the last four trading days in particular.  The run today saw the price extend above its 200 day moving average at 0.70972. Yesterday the price did move above that moving average level briefly but backed off into the close.  

The pair’s run higher today also moved above its 50% midpoint of the 2021 trading range at 0.71342, and is now looking toward the next key target at the September swing high at 0.71694.  

The 50% retracement and the 200 day moving average are now close risk for buyers.  If the price can stay above the 50%, that is the best case scenario, but ultimately a move back below the 200 day moving average at 0.7097 would be needed to the hurt the bullish technical bias going forward (risk level for buyers/longs).  

On the topside the 61.8% retracement at 0.7212 would be the next upside target followed by the swing highs between 0.72689 and 0.73148.

The NZDUSD remains well below its 2021 high price at 0.74642.

The Reserve Bank of New Zealand rose rates at their last meeting and are expected to continue to tighten at a 0.25 basis point clip going forward.  That should keep the NZDUSD supported all things equal. What might hurt that trend is risk off flows out of stock markets, expectations of much slower growth, or the Fed speeding up taper/tightening schedules.
Invest in yourself. See our forex education hub.

Articles You May Like

USD/CHF Price Analysis: Struggles to extend recovery above 0.9140-0.9160 supply zone
AUD/JPY corrects below 92.00 ahead of Australian Retail Sales
Oil falls as rate hikes loom and Russian flows stay strong
Markets Stay Cautious Shrugging Positive China Data, Dollar and Yen Recover
Apple reports earnings after the bell Thursday

Leave a Reply

Your email address will not be published. Required fields are marked *