Forex Marketz Daily Forex News – Fully Markets Update
Points to consider in this Forex market:
- The New Zealand Dollar was rejected at the long-term trend line resistance once again.
- Now waiting on a short NZD trade to come along before placing a short Kiwi Dollar sale.
- Trade strategy: Stand aside
The NZD/USD Forex market was once again rejected at the downward sloping trend line in play since July 2014. This trend line has been capping gains. While the corrective bounce higher from the November swing lows remain valid, we note a negative convergence with our RSI indicator. This hints at a possible top now in place. This is not yet confirmed but could lead to more NZD losses.
Technical Analysis
Let’s look at today’s daily NZD/USD technical analysis. A daily close below the technical support lining up at 0.6680 opens the gates for a challenge of a congestion area that begins at a horizontal pivot. This technical support area runs from 0.6618 to 0.6630. The alternative NZD/USD technical analysis should the Kiwi Dollar recover and move higher, notes trend line resistance lining up at 0.6681. A break above this live will open the doors for a challenge of the October 17, 2015 high at 0.6898/97.
Trade Strategy
Now let’s look at today’s NZD/USD trade strategy. Looks like a corrective move higher is in the process. I am watching carefully to see if I can get a short NZD sale in soon. Right now, the Kiwi Dollar is still too close to a technical support level to place a short sale. There is also no definitive upswing for a long NZD trade. I will opt to stand aside a bit longer, monitor my charts, before entering any trade. For today, I am flat in the NZD/USD Forex market. Still waiting for my short NZD sale to come along in line with the dominant bearish tone in this particular Forex market.
