The Kiwi Dollar Stalls at the Trend Line

NZD/USD (0.7321)

Points to consider in the Kiwi Dollar Forex market:

• The Kiwi Dollar is stalling near a four month old trend line.
• The US Federal Reserve and Reserve Bank of New Zealand (Fed, RBNZ) policy decisions are in focus.
• Trade strategy: Stand aside

The NZD/USD Forex market has declined after forming a bearish engulfing candlestick, visible on the below daily MT 4 chart. We will be using this chart for today’s daily technical analysis. A larger reversal has yet to find strength as the trend line support had held up. This trend line has been in play since late May 2016 and has guided the Kiwi Dollar higher.

Kiwi Dollar Technical Analysis

Let’s discuss today’s daily NZD/USD technical analysis. The first downside barrier is at the August 30 swing low. This level lines up at 0.7205. A daily close below this first downside barrier challenges the horizontal pivot lining up at 0.7101/0.71. The alternative Kiwi Dollar technical analysis, notes the first upside barrier lining up at 0.7351. A break above this first upside barrier notes a congestion area that runs to the September 7 close. This area is at 0.7425 to 0.7450.

Trade Strategy

Now let’s discuss today’s daily trade strategy for this Forex market. There is no conclusive trade available at this time. Also there is a lot of event risk with the pending monetary policy decisions from both the Fed and RBNZ. Taking all of this into consideration, I will opt to stand aside for now. For today, I am flat in the NZD/USD Forex market.