Advertisement
Australia markets closed

  • ALL ORDS

    7,817.40
    -81.50 (-1.03%)
     

  • ASX 200

    7,567.30
    -74.80 (-0.98%)
     

  • AUD/USD

    0.6419
    -0.0006 (-0.10%)
     

  • OIL

    83.17
    +0.44 (+0.53%)
     

  • GOLD

    2,411.80
    +13.80 (+0.58%)
     

  • Bitcoin AUD

    100,059.05
    +1,552.49 (+1.58%)
     

  • CMC Crypto 200

    1,380.44
    +67.82 (+5.17%)
     

  • AUD/EUR

    0.6024
    -0.0007 (-0.11%)
     

  • AUD/NZD

    1.0901
    +0.0026 (+0.24%)
     

  • NZX 50

    11,796.21
    -39.83 (-0.34%)
     

  • NASDAQ

    17,007.17
    -387.14 (-2.23%)
     

  • FTSE

    7,895.85
    +18.80 (+0.24%)
     

  • Dow Jones

    37,923.44
    +148.06 (+0.39%)
     

  • DAX

    17,737.36
    -100.04 (-0.56%)
     

  • Hang Seng

    16,224.14
    -161.73 (-0.99%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

NZD/USD Technical Analysis: 0.7000 Could Be Key Going Forward

Oded Shimoni

DailyFX.com -

Talking Points:

- NZD/USD having problem cracking resistance at 0.7120

- Further upside conviction might need to see a break above resistance at 0.7250

- 2.25% Official Cash Rate might be keeping the Kiwi bid, key intra-day levels here

Showcase your trading skills against your peers in FXCM's $10,000 Monthly Challenge Here, but learn good trading habits with the “Traits of successful traders” series

The NZD/USD is trading higher after the FOMC rate decision, but the pair seems to be having trouble breaking long term resistance at 0.7120 at the time of writing.

The pair has seen a bounce higher after finding support at a zone below the 0.7000 handle following sharp decline last week.

ADVERTISEMENT

At this stage, the NZD/USD might need to see further strength to move above the 0.7120 resistance, which could indicate another attempt to make new highs. A break above may expose what could be a key resistance area below the 0.7250 level, which coincides with the 0.38 Fib of the downtrend starting from July 2014.

A hold below the 0.7120 level might imply that the latest push higher is corrective and could put the focus again on the 0.7000 figure for possible support. A move below the 0.70 figure will change the current market “structure” and might have eyes on 0.69 and 0.67 for potential support.

Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing that about 46.4% of FXCM’s traders are long the NZD/USD at the time of writing. The SSI is mainly used as a contrarian indicator, implying a slight long bias.

You can find more info about the DailyFX SSI indicator here.

NZD/USD Daily Chart: July 28, 2016

NZD/USD Technical Analysis: 0.7000 Could Be Key Going Forward
NZD/USD Technical Analysis: 0.7000 Could Be Key Going Forward

--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com

To contact Oded Shimoni, e-mail oshimoni@dailyfx.com

Follow him on Twitter at @OdedShimoni


original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.