Forex Marketz Daily Forex News – Fully Markets Update
NZD/USD (0.6814)
Points to consider in this Forex market:
- The New Zealand Dollar moves higher against the US Dollar. Price are now challenging the resistance at the 17 month downward trend line.
- There is negative RSI convergence, but a stronger bearish signal needed before a short NZD trade.
- Trade strategy: Stand aside
The NZD/USD Forex market has moved higher this week. Prices have found support near the pivot at 0.67 and have risen to a two month high. Price action is now testing the falling trend line that has been capping prices for 17 months. This trend line originates back in mid-July of 2014. If you note the below daily NZD/USD MT 4 chart, there is also negative RSI convergence hinting that this correction higher could be coming to an end.
Technical Analysis
Now let’s look at today’s daily NZD/USD technical analysis. There is near term support lining up at 0.6778. A daily close below this technical level challenges the technical support lining up at 0.6679/80. The alternative NZD/USD technical analysis, should the Kiwi Dollar gain strength, notes technical resistance at the end of a congestion area starting at the trend line. This technical area runs from 0.6835 to 0.6848. A break above this technical resistance level challenges the next technical resistance lining up at another congestion area running to the October 15 high. This area runs from 0.6885 to 0.6898.
Trade Strategy
Let’s discuss today’s daily NZD/USD trade strategy. I want to enter a short NZD trade in line with the overall bearish sentiment in this market. However, there is no clear cut bearish reversal signal yet and we are trading too close to a key technical resistance level to pull a trigger on any trade. A short or long NZD trade is still a bit premature. For now, I will sit on the sidelines till a better trade opportunity comes along. I am flat in the NZD/USD Forex market.
