Technical Analysis

New Zealand Greenback Weekly Technical Forecast: NZDUSD to Proceed Slide, NZDCAD Faces 2016 Resistance

Technical Forecast for the New Zealand Greenback: Bearish

The Kiwi noticed some weak point alongside the Australian Greenback throughout Wednesday’s USDJPY flash crash however has since recovered

NZDCAD faces a number of technical convergences, primed to commerce decrease

The New Zealand Greenback appears poised to proceed downward with few technical tailwinds

NZDUSD has persistently traded decrease in latest weeks and now trades beneath resistance from the trendline originating on December Fourth. The top and shoulders sample despatched the pair decrease and after a powerful Friday efficiency, the Kiwi appears poised to check the trendline subsequent week. A failed take a look at would function robust affirmation for a sustained transfer decrease and continuation of the latest pattern.

NZD/USD Value Chart Four-Hour, June 2018 to January 2019 (Chart 1)

NZDUSD 4-Hour Price Chart

A failed take a look at would additionally serve to strengthen the resistance transferring ahead. To the draw back, assist is constructing from the lows in October and the latest backside from Wednesday’s Yen flash crash. Whereas nonetheless in early phases of improvement, the road must be watched because it converges with the resistance line from early December.

See our first quarter forecasts for NZD, USD, CAD and different currencies with the DailyFX Buying and selling Guides.

One other worth level to look at within the week forward contains zero.6700, a spherical quantity that has supplied average assist and resistance up to now six months. Coupled with close by resistance from the December Fourth trendline, a break beneath zero.6700 might serve to drive the pair decrease in earnest.

NZD/CAD Value Chart: Four-Hour August 2017 to January 2019 (Chart 2)

NZDCAD 4-Hour Price Chart

One other Kiwi cross to look at is NZDCAD. My Twitter followers will know I’ve eyed the pair for a while, notably whereas it was vary certain. You possibly can comply with me on Twitter for updates on the pair at @PeterHanksFX. A break from the vary on Wednesday now presents an fascinating technical panorama with the decrease certain serving as resistance.

NZD/CAD Value Chart: Every day, November 2016 – January 2019

NZDCAD Daily Price Chart

Instantly beneath that, a trendline from 2009 will function near-term assist. Two lengthy tails on Thursday and Friday counsel bulls will not be able to give up the technical stage however a break beneath in August confirms it may be achieved. As the road approaches the decrease certain of the latest vary, round .9078, the pair will run out of room and face a number of resistance ranges.

Above the decrease certain stage rests resistance from November 2016, a trendline that has held since its inception. Given the respect commanded by the trendline and the latest incapability to interrupt above the vary, my technical forecast for NZDCAD is bearish and foresee it continuing decrease within the coming weeks.

–Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and comply with Peter on Twitter @PeterHanksFX

DailyFX forecasts on quite a lot of currencies such because the Pound or the Euro can be found from the DailyFX Buying and selling Guides web page. In the event you’re seeking to enhance your buying and selling method, take a look at Traits of Profitable Merchants. And for those who’re in search of an introductory primer to Forex, take a look at our New to FX Information.

Different Weekly Technical Forecasts:

Australian Greenback Forecast: AUD/USD, AUD/CAD & EUR/AUD Costs Eye Technical Reversal Patterns

British Pound Forecast:20-Month Spike Low Might Be Re-Examined

US Greenback Forecast: Greenback Getting ready to Break from its Most Restrictive Vary In 4 Years

Fairness Forecast: Technical Forecast for Dow, S&P, DAX, FTSE 100 and Nikkei


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