New Zealand Dollar Price Technical Outlook: NZD / USD Weekly Trade Levels
- New Zealand dollar Updated Technical Trade Levels – Weekly Chart
- NZD / USD rally targets resistance to old support
- Support 6790, 6702/33 (key) – Resistor 7100, 7121, (bearish invalidation 7189)
The New Zealand dollar jumped more than 1.75% from the US dollar this week with the NZD / USD attempting to move back above a key technical area that we have been tracking for months. It is the updated goals and invalidation levels that rely on the NZD /USD Weekly price chart through the end of August. Review my last Strategy webinar for an in-depth analysis of this KiwiTrade configuration and more.
New Zealand Dollar Price Chart – NZD / USD Weekly
Graphic prepared by Michel Boutros, technical strategist; NZD / USD on Tradingview
Remarks: In my last New Zealand dollar Price prediction we noted that Kiwi was’ set to score a sixth weekly test of key support at 2019 / December 2018 highs at 6941/69.“ This threshold held for a total of nine consecutive weeks before collapsing, with the decline reversing just before support converges to the July 2019 high / 100% extension of the annual decline to 6790/95. This recovery now tests the first resistance to the old Support and we are looking for a possible inflection of prices compared to these levels. Look at the weekly close.
Ultimately, a breach / close to the upside above the 100-day moving average at 7013 is needed to invalidate the monthly downtrend with such a scenario exposing the 61.8% Fibonacci retracement of the decline from May to 7121 and the annual objective open to 7189– the two zones of interest for a possible depletion of the SI surface reached. A break out of the lows would shift focus to key support at the 38.2% / 2020 year-on-year retracement open to 6702/33– look for a stronger reaction if it is reached.
At the end of the line : New Zealand dollar rally extends into first week resistance levels – IF last week’s outage was legitimate, this recovery is likely to run out before the monthly highs. From a business perspective, look to reduce long exposure, increase protection stops on a stretch towards the 70-manipulate. Be on the lookout for declining exhaustion closer to 6700 SI reached with a weekly breach / close above the yearly open ultimately needed to suggest that a larger low is in place. I will post an update New Zealand Dollar Price Outlook once we have more clarity on the near term kiwi technical trading levels.
For a full description of Michael’s trading strategy, see his Fundamentals of Technical Analysis Series on Building a Trading Strategy
New Zealand Dollar Traders Sentiment – NZD / USD Price Chart
- A summary of Sentiment of IG customers shows traders are net short NZD / USD – ratio stands at -1.47 (40.46% of traders are long) – generally low bullish reading
- Long positions are 2.47% less than yesterday and 26.34% less than last week
- Short positions are 4.26% more than yesterday and 69.71% more than last week
- We generally take a contrarian view of crowd sentiment, and the fact that traders are net short suggests that NZD / USD prices may continue to rise. Traders are even shorter than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger NZD / USD countercurrent trading bias from a feeling point of view.
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Previous weekly technical charts
— Written by Michel Boutros, Technical currency strategist with DailyFX
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