HomeContributorsTechnical AnalysisNZD/USD Downside Still An Option

NZD/USD Downside Still An Option

Price dropped in the last hours and erased the morning gains. The Kiwi is trading in the red right now, while the USD is struggling to start another leg higher in the upcoming days. Is premature to talk about an important drop because the price is located much above the 0.7131 lowest low.

Now is very important how will react after the United States data will be released, some positive numbers will lift the greenback. USDX is still trading in the red, but technically, seems a little oversold on the Daily chart. The dollar index stays much above the 91.64 lowest low, a minor consolidation here will signal a reversal on the short term

The United States ISM Non-Manufacturing PMI is expected to increase from 53.9 to 55.8 points, a better report will boost the USD. The Trade Balance and the Final Services PMI will be released as well.

You can see on the Daily chart that the rate has come back to retest the Head and Shoulders neckline (minor red uptrend line). Price has jumped above this line in the yesterday’s session, but failed to close there, we had a false breakout above it today as well. NZD/USD is trading in the red right now and could come back to retest the minor Falling Wedge upside line.

Could drop also to retest the 50% Fibonacci level, I’ve said in the previous report that an accumulation above it will signal an increase at least till the third warning line (WL3).

MultiBank Exchange Group
MultiBank Exchange Grouphttp://www.mexgroup.com
Multibank Exchange Group (MEX Group) is a multinational financial derivatives dealer. Established in California in 2005, MEX has offices in several countries around the world, including the US, the UK, Australia and China. Mex Group is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Ras al Khaimah Free Trade Zone (RAK) in the United Arab Emirates and the Financial Services Commission (FSC) in the British Virgin Islands.

Featured Analysis

Learn Forex Trading

Range Trading Explained

Making use of a Trading Journal

The EUR/USD

Best Forex Scalping Method