Kiwi Dollar Crashes through the Trend Line

Points to consider in this Kiwi Dollar Forex market:

• The Kiwi Dollar breaks below the short term trend line support.
• Waiting on better risk to reward parameters before taking on a short NZD sale.
• Trade strategy: Stand aside

The NZD/USD Forex market has broken below the rising trend line in play since late July. This suggests a reversal could now be in play as he bears could take hold. However, right now, there is very little follow through as this Forex market continues to consolidate in a quiet range trade this morning.

Kiwi Dollar Technical Analysis

Let’s discuss today’s NZD/USD daily technical analysis. There is near term support for the Kiwi Dollar lining up at 0.7215. A daily close below this first downside barrier notes the next technical support level that lines up at 0.7110. The Alternative Kiwi Dollar technical analysis, notes trend line resistance, former support, as the first upside barrier. This technical resistance level lines up at 0.7277. A break above this first upside barrier challenges the July 12 high price point. This technical resistance level lines up at 0.7325.

Trade Strategy

Let’s now talk about trade strategy in this New Zealand Dollar Forex market. Right now, from a risk to reward perspective. Price action is too close to a technical support level to justify a short NZD sale. This trade would be a bit premature. For now, I will opt to stand aside and wait on a better short NZD sale opportunity to come along. For today, I am flat in the NZD/USD Forex market.