NZD/USD – The New Zealand Dollar is Above 0.64

Points to consider in this Forex market:

• With the Reserve Bank of New Zealand (RNBZ) rate decision looming, we could see a break of the range soon.
• Looking for another short New Zealand Dollar sale as this market is still bearish.
• Trade strategy: Stand aside

The NZD/USD Forex pair is consolidating quietly above the 0.64 figure. Traders, as expected, shrugged off the Fed rate decision overnight and now wait on the RBNZ decision. The market fell sharply lower on risk aversion trading then attempted to recover from a four month low. Now this Forex market is quietly consolidating waiting for direction.

Technical Analysis

Let’s look at today’s NZD/USD technical analysis. The New Zealand Dollar has near term resistance lining up at 0.6551. A daily close above this first barrier challenges the next upside technical barrier lining up at 0.6615. The alternative NZD/USD technical analysis, should the Kiwi Dollar push lower, notes a congestion zone as the first support barrier. This area runs from 0.6432 to the horizontal pivot at 0.6398. A break below this area challenges the next technical support lining up at 0.6355.

Trade Strategy

Today’s trade strategy in the NZD/USD Forex market is more of a fundamental decision than a chart based one. Right now the average trading range or ATR is very narrow to warrant a long or short NZD trade. From a risk to reward perspective any trade is premature. The dominant New Zealand Dollar trend remains bearish so I would prefer a short NZD trade. With the looming RBNZ decision coming up, I am hoping that will break the quiet trading pattern. For now, I will opt to stand aside in this Forex market. Today, I am flat in the NZD/USD Forex market.