The New Zealand Dollar finished slightly higher on Friday. The range was tight and volume was well-below average ahead of the long Easter holiday week-end. New Zealand and the United States were on holiday so most of the major players – banks and institutions – were absent. There were no major events to change the weekly tone, but a pair of U.S. housing reports did come in weaker-than-expected.
On Friday, the NZD/USD settled at .6687, down 0.0039 or -0.57%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through .6668 will signal a resumption of the downtrend. The main trend will change to up on a move through .6784.
The main range is .6591 to .6943. Its retracement zone at .6726 to .6767 is controlling the near-term direction of the Forex Pair. Trading below this zone is helping to generate the downside bias.
Daily Technical Forecast
Based on the price action the last three sessions and the close at .6687, the direction of the NZD/USD is likely to be determined by trader reaction to the uptrending Gann angle at .6687.
A sustained move over .6687 will indicate the presence of buyers. If this move generates enough upside momentum then look for a potential acceleration into the downtrending Gann angle at .6719 and the Fibonacci level at .6726. Since the main trend is down, look for sellers to come in on the first test of this retracement zone.
Taking out .6726 will indicate the buying is getting stronger. This could trigger another acceleration to the upside with the 50% level at .6767 the next likely upside target.
A sustained move under .6687 will signal the presence of sellers. The first target is last week’s low at .6668. Taking out this level will indicate the selling is getting stronger. This could extend the selling into the next uptrending Gann angle at .6639. This is the last potential support angle before the .6591 main bottom.
This article was originally posted on FX Empire
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