Points to consider with the Kiwi Dollar:
- The Kiwi Dollar falls lower after testing the range top and failing, again.
- Looking to enter a NZD short sale on a break above 0.72.
- Trade strategy: Flat, pending short NZD sale at 0.7205
The NZD/USD Forex market fell lower after failing yet another test of the familiar range top above the pivot at 0.72. This hints at more Kiwi Dollar weakness on the horizon against the US Dollar. The below MT 4 chart, which will be used for our technical analysis today, argues for a bearish bias since the top in early February.
Kiwi Dollar Technical Analysis
Let’s discuss today’s daily New Zealand Dollar technical analysis. There is near term support lining up at 0.7137. A daily close above this first downside barrier challenges the next layer of technical support that lines up at 0.7065.
The alternative technical analysis notes a resistance cluster con that runs to the December 14 high. This area is at 0.7230 to 0.7240. A break above this first upside barrier challenges the next upside barrier at another cluster zone from the November 8 to February 7 highs. This area is at 0.7377 to 0.7402.
Trade Strategy
Right now, let’s talk trade strategy. Price action is too far below the range top to justify a short NZD sale right now. I will enter a pending NZD short sale at 0.7205. If it goes active, the initial target lines up at 0.7137 with the first stop loss entered at 0.7240, to activate on daily close above this level.