NZD/USD Technical Analysis: NZ Dollar Rally Ready to Resume?

NZD/USD Technical Strategy: FLAT

  • New Zealand Dollar attempting to resume advance after support retest
  • Monthly chart positioning warns against bets on upside follow-through
  • Opting for the sidelines until better-defined trade setup presents itself

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The New Zealand Dollar is attempting to revive upward momentum after retesting resistance-turned-support in the 0.6688-0.6726 area. Immediate resistance is at 0.6851, with a break above that confirmed on a daily closing basis opening the door for a test of the June 6 high at 0.7060.

Alternatively, a turn back below 0.6688 paves the way for another challenge of former range top resistance in the 0.6592-0.6619 zone. This followed by a more potent threshold at the 0.65 figure, marked by a chart inflection point in play since mid-September and former falling trend line resistance (now recast as support).

New Zealand Dollar vs US Dollar - daily chart

While daily chart positioning seems to make a compelling case for the upside scenario, turning to the longer-term setup undermines conviction. Prices appear to be retesting

Article source: https://www.dailyfx.com/forex/technical/home/analysis/nzd-usd/2018/11/14/NZDUSD-Technical-Analysis-NZ-Dollar-Rally-Ready-to-Resume.html