Kiwi Dollar Hits a New 15 Month High

NZD/USD (0.7265)

Points to consider in this Kiwi Dollar Forex market:

• The Kiwi Dollar has corrected higher to a new 15 month high after the Reserve Bank of New Zealand (RBNZ) policy decision.
• Breakout lacks bullish conviction without daily close above June high.
• Price strategy: Stand aside

The NZD/USD Forex market has corrected higher to a new 15 month high after the RBNZ monetary policy decision. However, there is no bullish conviction with a daily close back above the late June high price point. Please refer to the below daily MT 4 chart for today’s daily technical analysis.

Kiwi Dollar Technical Analysis

Let’s discuss today’s NZD/USD daily technical analysis. The first key level of technical resistance lines up at the June 24 high price point. This first upside barrier is at 0.7928.  A daily close above this first upside barrier is bullish for a challenge of the next technical resistance level that lines up at 0.7352. The alternative Kiwi Dollar analysis, notes the first layer of technical support lining up at 0.7225. This is also a former resistance level.  A break below this first downside barrier challenges a horizontal pivot that lines up around 0.7201/0.72.

Trade Strategy

Let’s talk trade strategy in the New Zealand Dollar Forex market. Price action is too close to a technical upside barrier to justify a long NZD buy. From a risk to reward perspective that move would be premature. There are also not bearish reversal indications to warrant a short NZD sale. For now, I will opt to stand aside and monitor my charts for a better trade opportunity to present itself. For now, I am flat in the NZD/USD Forex market.