Home » Technical Analysis » Kiwi Dollar Stays below 0.70 Trading around 0.6975

Kiwi Dollar Stays below 0.70 Trading around 0.6975

new zealand dollar, kiwi

Looking at the Kiwi, also known as the New Zealand dollar (NZD), on the above daily NZD/USD MT 4 price action chart, this currency exchange rate has been inching higher as Forex market sentiment has generally improved. This has weakened the safe haven U.S. dollar (USD) across the board.

Right now the Kiwi dollar is taking a breather around 0.6975. The New Zealand dollar is having trouble clearing the key and psychological barrier at 0.70.

Other than a busy economic calendar out of the United States on Thanksgiving Holiday eve, the rest of the economic calendar is quiet. U.S. financial markets will be closed on Thursday and only open for half a day on Friday. Today, the U.S. central bank, the Federal Reserve Board, will release their monthly Federal Open Market Committee (FOMC) minuets from their last monetary policy and rate decision.

The Labor Department, a day early because of the holiday, is releasing weekly labor data. The University of Michigan is releasing their monthly revised consumer sentiment gauge. The big economic data release on the U.S. calendar is the quarterly gross domestic product (GDP).

The rest of the key G-20 nations have quiet economic calendars. This includes New Zealand, the United Kingdom and the European Union. Canada also has nothing scheduled for release on Wednesday.

Kiwi Dollar Technical Analysis(NZD/USD)         

Looking at price action, the NZD/USD currency exchange rate seems to be in a good place for the Kiwi dollar. With that said, Forex traders should note that the 14 day relative strength index (RSI) is signaling overbought and the 14 day MACD histogram is now producing smaller bars above the zero line. This is a signal of possible bearish pressure in this Forex market.

A daily close below the ten (10) day simple moving average lining up at 0.6910 will open the door to challenge the next downside barrier in play at 0.6880.

On the upside, a daily close above the key round number at 0.70, will open the door for the bulls to challenge 0.7015. The next layer of technical resistance lines up at 0.7055.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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