NZD/USD Forex Technical Analysis – Strengthens Over .6952, Weakens Under .6914
The New Zealand Dollar was nearly stagnant for fourth consecutive session on Monday as investors continued to assess the impact of last week’s dovish Fed minutes, President Trump’s comments on the U.S.-China trade negotiations and the surprise cancelation of the U.S.-North Korea meeting.
In limited trading action on Monday due to U.S. and U.K. bank holidays, the NZD/USD settled at .6943, up 0.0027 or +0.39%.
The Kiwi was lifted a little on Monday in reaction to the news that delegates from the United States and North Korea are still working on securing a meeting on June 12 between U.S. President Trump and North Korean President Kim Jong-un.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The closing price reversal top at .6978 on May 22 is also exerting some downside pressure. The main trend will change to up on a move through .7053. A trade through .6850 will signal a resumption of the downtrend.
The minor trend is also down. A trade through .6978 will change the minor trend to up. This will also shift momentum to the upside.
The minor range is .6850 to .6978. Its 50% level or pivot is .6914. This level has been acting like support.
The intermediate range is .7053 to .6850. Its 50% level or pivot is at .6952. This level is acting like resistance.
The major range is .6780 to .7437. Its retracement zone at .7031 to .7109 is controlling the longer term direction of the Forex pair.
Daily Swing Chart Technical Forecast
Based on Monday’s limited price action, the direction of the NZD/USD on Tuesday is likely to be determined by trader reaction to the intermediate pivot price at .6952.
A sustained move under .6952 will indicate the presence of sellers. This could drive the Kiwi into the short-term pivot at .6914.
Taking out .6914 will be the next sign of weakness. This is followed by the minor bottom at .6884. This is the last support before the main bottom at .6850.
Overtaking and sustaining a move over .6952 will signal the presence of buyers. This could trigger a surge into the minor top at .6978. This is a potential trigger point for an acceleration into .7031, .7053 and .7108.
This article was originally posted on FX Empire
