Kiwi Dollar Trading at a 2 Year Low

Points to consider in the Kiwi Dollar Forex market:

• The Kiwi Dollar has recovered a little this morning after 7 days of declines.
• There is no trade from a risk to reward stand point.
• Trade strategy: Stand aside

The NZD/USD Forex market has seen 7 days of declines before recovering this morning. The Kiwi Dollar had hit two month low after sellers attempted to break through the 0.70 level. This recovery has ended the longest losing streak since January, but the New Zealand Dollar is still bearish.

Kiwi Dollar Technical Analysis

Let’s discuss today’s daily technical analysis in the NZD/USD Forex market. There is near term support lining up at 0.6962. This is the June 15 low, and a daily close below this first downside barrier is needed to challenge the technical support at 0.6922. The alternative New Zealand Dollar technical analysis, notes the first upside barrier lining up at 0.7076. A break above this first upside barrier challenges the next technical resistance level that lines up at 0.7070.

Trade Strategy

Let’s now discuss the trading strategy for this Forex market. There is no attractive trade setup at this time. Price action is too close to a technical resistance level and the average trading range (ATR) is simply too narrow. This makes taking any trade unappealing for now. Taking this into consideration, I will opt to stand aside and monitor my charts until a better trade opportunity comes along. For now, I remain flat in the NZD/USD Forex market.