Kiwi Dollar Eyes Support below 0.68

NZD/USD (0.6897)

Points to consider in this Kiwi Dollar Forex market:

• A double top looks to be forming below the 0.70/0.71 pivot levels.
• Need confirmation before entering another short Kiwi Dollar sale.
• Trade strategy: Stand aside

The NZD/USD Forex market has turned sharply lower after failing at the resistance level of 0.76. The Kiwi Dollar saw its largest intraday decline in eight months. Price action is suggesting a double top chart formation below the 0.70/0.71 pivot levels may be emerging. If confirmed, this could lead to even more losses with the Kiwi Dollar. Please refer to the below daily MT 4 chart for today’s technical analysis.

Kiwi Dollar Technical Analysis

Let’s discuss today’s daily NZD/USD technical analysis. There is near term support lining up at 0.6785. A daily close below this first downside barrier challenges 0.67. The alternative New Zealand Dollar analysis, should the NZD recover, notes the first upside barrier at 0.6925. This is a former support level. A break above this technical level challenges the next upside barrier at the end of congestion area running from the April 19 high. This level is at 0.7055 to 0.7077.

Trade Strategy

Now let’s discuss today’s trade strategy with the Kiwi Dollar. I have attempted to enter some short NZD sales over the last month or so with very limited success. Price action in this market has been erratic from high to low and my gains have been breakeven at best. Right now, I need a better technical setup before placing a trade. I would like another short NZD sale in line with my bearish NZD forecast but for now I will wait for a break of 0.6785 before placing another trade. Right now I am standing aside and flat in this Forex market.