The NZD/USD exchange rate has been trading in a junior descending channel pattern since the middle of January. The New Zealand Dollar re-tested the upper boundary of the channel pattern on Friday.
The 50-hour simple moving average pressured the currency pair further south during Monday’s trading session.
Meanwhile, technical indicators suggest that the bearish momentum is likely to continue within this session.
If this decline continues, a breakout through the lower boundary of the descending channel pattern is likely to occur today.
The 50-hour simple moving average pressured the currency pair further south during Monday’s trading session.
Meanwhile, technical indicators suggest that the bearish momentum is likely to continue within this session.
If this decline continues, a breakout through the lower boundary of the descending channel pattern is likely to occur today.
Note
Upside sentiment dominated the New Zealand Dollar against the US Dollar on Friday. The exchange rate gained about 105 base points during Friday’s trading session.
Most likely, it is expected that the currency pair maintains its upward momentum today. However, bearish traders could push the price towards a support cluster formed by the combination of the weekly and the monthly pivot points at the 0.6800 area within this session.
A potential upside reversal is likely to occur if the support cluster as mentioned above holds.
Note
The New Zealand Dollar edged lower against the US Dollar on Monday. The decline was stopped by the 50-hour simple moving average at 0.6820 at the end of the previous trading session. Technical indicators demonstrate that the currency exchange rate could continue to trade in a junior ascending channel pattern within this session.
If this upside sentiment continues today, a breakout through the upper boundary of a dominant descending channel is likely to occur.
Traders should look for opportunities to trade the currency pair if a resistance cluster at 0.6889 holds.
Note
The Zealand Dollar depreciated about 40 base points against the US Dollar on Tuesday.
Wednesday’s trading session began with bullish sentiment, and by the middle of the day, the exchange rate has gained about 0.51% of its values.
The currency pair is currently testing a support level set by the 50-hour simple moving average at 0.6839.
If the support level holds, the upside momentum could continue within this session.
However, if the pair passes the 50-hour SMA, the next target will be at 0.6819.
Note
Upside risks prevailed in the market on Wednesday, thus sending the New Zealand Dollar to appreciated about 86 base points against the US Dollar. The currency pair was trading near the upper boundary of an ascending channel pattern at 0.6920 during the second half of Thursday’s trading session and could be set for a breakout.
Bullish traders are likely to push the currency exchange rate towards the weekly R2 at 0.6944 today.
However, it is expected that the pair makes a brief decline towards the 50-hour simple moving average at 0.6858 during the following hours.
Note
The New Zealand Dollar depreciated about 50 base points against the US Dollar on Friday. The decline started when the currency pair tested a resistance level formed by the upper boundary of an ascending channel pattern at 0.6940.
The exchange rate was stranded between SMAs during the first part of Monday’s trading session. The 50-hour simple moving average was providing resistance for the pair at 0.6910, while the 100-hour SMA was providing support at 0.6882.
A breakout from the moving averages could be expected within this session. Technical indicators suggest that bulls are likely to prevail in the market during the following trading session.
Note
The New Zealand Dollar traded with low volatility against the US Dollar on Monday. The currency pair made a 33 pips movement during Monday’s trading session.As for the near future, it is likely that the currency exchange rate continue to trade in a junior ascending channel.
Technical indicators on the daily time-frame demonstrate that bulls are could dominate today’s trading session. The possible short-term target for the NZD/USD currency pair will be near a swing high of 0.6940.
Note
Today’s trading session began with a strong bearish sentiment. The New Zealand Dollar has depreciated about 59 base points during the morning hours of Wednesday's session.
A breakout through the lower boundary of an ascending channel occurred during the European trading session on Wednesday.
Given that a breakout had occurred, it is likely that bears could push the currency exchange rate towards a support level at 0.6826 during the following trading session.
Although, the market sentiment could changes within the following hours, as technical indicators suggest bullish signals on the daily time frame.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.