Daily forecasts

Forex Analysis – NZDUSD Bearish Continuation

Forex Analysis – NZDUSD Bearish Continuation

Great time to short this pair for the following reasons: 1) Looking at the bigger picture first, we have rejected the 0.73500 level numerous times on the weekly chart, this area is holding as strong resistance and has caused a reversal in trend.

2) The weekly price has been forming lower highs and lows with a huge bearish engulfing candle 3 weeks ago. This was followed up by a bearish marubozu candle which broke our long term weekly trend line as well as key support.

3) On the daily chart , we’ve touched another area of support at 0.69780 and pulled back to restest weekly trend line as well as previous support now turned resistance.

4) This restest has formed a daily bearish shooting star with a nice long upper wick showing selling pressure, a good sign for reversal.

5) Both weekly and daily EMAs/MAs are in alignment. 6) On the 4 hour, we’ve broken our short term counter trend line and now expecting a move to 0.69800s. I think we can go lower after breaking the target area all the way down to 0.66800s.

Forex Analysis

Forex Analysis – NZDUSD Sell-Off

NZDUSD Pair set for sell-off to 0.6900 support level on overall Kiwi bearish sentiment whilst US Data drive the Dollar to new highs.

forex analysis

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Mohammad Riad

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  • NZD/USD Fundamental Analysis: December 15, 2016

    The New Zealand dollar depreciated as more investors go for safe haven assets since commodity prices dropped in spite of the tension brought by the Federal Reserve’s interest rate decision this week. The pair NZD/USD weakened by 17 points to 0.6698 after the greenback rebounded since the decline on Friday influencing the cross trades while the commodity prices remain low.

    Currencies that are heavily influenced by commodities dropped to its lowest recorded rate for more than six years because of a drop in oil prices. Concerns in U.S. Junk bonds reemerged while majority are feeling pressured by the Fed’s policy meeting this week. It is anticipated that the Federal Reserve Open Committee (FROMC) will proceed with the rate hike since the close to zero policy in December 2008 as the traders rely on hints for future changes.

    The New Zealand’s BNZ-BusinessNZ performance of services index for November will be announce today. While, Industrial production will also be released today from both Europe and Japan, as well as Tankan manufacturing index will be publicized by Japan.

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