NZD / USD Forex Technical Analysis – Fail To Hold .6819 Will Produce Another Whipsaw Trading Session
The New Zealand dollar edged higher on Thursday, as more countries looked for ways to save economic activity through Omicron’s push, while trade volume remained weak as it approached. the end of the year.
At 05:53 GMT, the NZD / USD is trading at 0.6833, up 0.0006 or + 0.08%.
Volatility was Wednesday’s theme as sentiment of risk aversion pushed the Kiwi down early in the session. Conditions changed later in the say as sentiment shifted to “risk-on”. This sparked a saw move in the NZD / USD which took the Forex pair to its highest level since December 1st.
The rally came to a halt, however, when 10-year US Treasuries hit their highest level since December 10.
Due to the extremely low volume before the holidays, we cannot get a good read on what traders are thinking. We must conclude, however, that we would probably not see this kind of commercial action if the main players – banks and institutions – were involved.
Technical analysis of the daily swing chart
The main trend is upward on the daily swing chart. A trade through .6849 will signal a resumption of the uptrend. A move to 0.6789 will change the main downtrend.
The minor range is 0.6789 to 0.6849. Its 50% or pivot level at .6819 is support.
The short-term range is 0.6868 to 0.6702. Its 50% level at 0.6785 is additional support.
Another minor range is 0.6702 to 0.6849. Its retracement area of 0.6755 to 0.6758 is a value area.
On the upside, the closest resistance is a pivot at 0.6878. It is also the trigger point for an upward acceleration.
Technical forecasts of the daily swing chart
The direction of NZD / USD on Thursday will likely be determined by the reaction of traders at 0.6819.
A sustained move above .6819 will indicate the presence of buyers. If that creates enough bullish momentum, look for a push towards 0.6849.
The breakthrough of .6849 will indicate that the buy gets stronger with the next target area .6868 – .6878.
A sustained move below 0.6819 will signal the presence of sellers. This could trigger a drop between 0.6789 and 0.6785. The latter is a potential trigger point for an acceleration in 0.6758.