Forex Marketz Daily Forex News – Fully Markets Update
The morning the New Zealand or Kiwi dollar breached the bound of its short term corrective move. This was a downside break which suggests that the downtrend that started with the NZD/USD Forex market in late July has possibly restarted.
Looking at global geopolitical news, the Kiwi dollar briefly broke above the critical pivot at 0.73 after polling data showed that the National Party, which holds the premiership now, has expanded its lead for the national elections to be held on September 23.
In other political news, the rogue nation of North Korea fired an intermediate ballistic missile over the nation of Japan. The prime minister of Japan called for immediate and even stiffer sanctions against North Korea. This ignited tensions in the region and supported safe haven plays.
Kiwi Dollar Technical Analysis
There is near term support for the Kiwi lining up at 0.7175. A daily close below this first technical support barrier challenges the next downside barrier at a cluster zone running towards the August 31 close. This area is at 0.7125 to 0.7131.
The alternative technical analysis notes the first upside barrier lining up at a cluster zone running to the September 5 low. This area is a 0.7238 to 0.7240. The next upside barrier lines up at 0.7295.
As far as a trade is concerned, there is a bearish flag chart pattern in play. There is now a short NZD sale at 0.7220. The initial target at 0.7175. For right now the initial stop loss will activate with a daily close above 0.7240.
