NZD/USD – The New Zealand Dollar Moves Higher

Points to consider in this Forex market:

• The New Zealand Dollar is trying to break higher from the range trade.
• Still waiting on a viable short NZD sale in line with my overall bearish New Zealand Dollar outlook for 2016.
• Trade strategy: Stand aside

The NZD/USD Forex market is trying to break above a congestion range resistance that has capped gains for nearly a month. The Forex market is currently above this level but running out of steam around the first resistance level. There is also negative RSI convergence starting to materialize as the New Zealand Dollar is overbought. This is indicating that the bearish trend could be getting to return in this Forex market.

Technical Analysis

Let’s now discuss today’s daily NZD/USD technical analysis. The New Zealand Dollar is currently above the first upper boundary at 0.6775. This is also the February 26 high. If you note the RSI, below, you can see that is starting to move lower as this market runs out of steam. The next resistance level to watch is at a double top. This level is at 0.6882 to 0.6898. The alternative NZD/USD analysis, Should the New Zealand Dollar fall, notes technical support at 0.6570. A break below this boundary, challenges the next support layer at 0.6508.

Trade Strategy

Now let’s discuss today’s NZD/USD daily trade strategy. My overall outlook, for this year, is bearish New Zealand Dollar. I feel this is only a correction that will eventually lose steam and open the doors for a more desirable short NZD sale. Until then, I will stand aside and wait. For today, I am flat in the NZD/USD Forex market.