NZD/USD Forex Technical Analysis – Momentum Shifts to Upside after RBNZ Says No Present Need to Buy Bonds

James Hyerczyk
2 min read
0
In this article:

The New Zealand Dollar is trading higher against the U.S. Dollar on Friday after the country’s finance minister said on Friday that there was no need at present for the Reserve Bank of New Zealand (RBNZ) to buy government bonds directly.

“At this point in time we don’t see a need for that,” Grant Robertson said at a news conference.

“The bond markets continue to operate well and they are at what I believe is the appropriate point. Never say never, but for now there is no need for that,” he said.

This is bullish news because it means the RBNZ feels the economy is strong enough at this time to forego the need for additional stimulus.

At 02:23 GMT, the NZD/USD is trading .6125, up 0.0038 or +0.62%.

Daily NZD/USD
Daily NZD/USD

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .6176 will signal a resumption of the uptrend. The main trend will change to down on a trade through the new main bottom at .5995.

The minor trend is also up so momentum has shifted back to the upside.

The main range is .6448 to .5469. Its retracement zone at .5958 to .6074 is controlling the longer-term direction of the Forex pair. The NZD/USD is currently trading on the strong side of this zone, giving it an upside bias.

The minor range is .5911 to .6176. Its 50% level at .6043 is also support.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the NZD/USD the rest of the session on Friday is likely to be determined by trader reaction to the Fibonacci level at .6074.

Bullish Scenario

A sustained move over .6074 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the main top at .6176. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under .6074 will signal the presence of sellers. The first downside target is the pivot at .6043. If this level fails then look for the selling to possibly extend into the main bottom at .5995, followed by the major 50% level at .5958.

This article was originally posted on FX Empire

More From FXEMPIRE:

Advertisement

Recommended Stories