Yahoo Finanza NZD/USD Forex Technical Analysis – Strengthens Over .6299, Weakens Under .6217
The New Zealand Dollar closed higher on Friday but still posted its seventh consecutive weekly loss as investors moved back into higher-risk assets. U.S. stocks rose as the markets looked to avoid falling into bear territory following heavy selling in recent days.
The price action largely reflected a shift out of the safe-haven U.S. Dollar, encouraging some short New Zealand Dollar traders to cover.
On Friday, the NZD/USD settled at .6290, up 0.0056 or +0.90%.
In economic news, the New Zealand April Manufacturing PMI hit its lowest level since August 2021.
After the release of the report, BusinessNZ’s Catherine Beard said that after steady expansionary results over recent months, the April result highlighted the fickle nature of what manufacturers are currently experiencing.
BNZ Senior Economist Craig Ebert added, “Supply problems certainly featured extensively in respondents’ comments, including inferences that COVID, and related absenteeism, remains a big issue, even with recorded case numbers having peaked back in March. This provides valuable context to the negativity in the PMI’s jobs index.”
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through .6217 will signal a resumption of the downtrend. A move through .6569 will change the main trend to up.
The minor trend is also down. A trade through .6380 will change the minor trend to up. This will also shift momentum to the upside.
The first minor range is .6380 to .6217. Its pivot at .6299 is the first upside target. The second minor range is .6569 to .6217. Its pivot at .6393 is additional resistance.
The major resistance is a long-term 50% level at .6467. The major support is a long-term Fibonacci level at .6231.
Daily Swing Chart Technical Forecast
Trader reaction to .6299 early Monday is likely to determine the direction of the NZD/USD.
Bullish Scenario
A sustained move over .6299 will indicate the presence of buyers. If this is able to generate enough upside momentum then look for a surge into a resistance cluster at .6380 – .6393.
Taking out .6393 will indicate the short-covering is getting stronger. This could trigger a surge into the long-term 50% level at .6467.
Bearish Scenario
A sustained move under .6298 will signal the presence of sellers. This could trigger a sharp break into the long-term Fibonacci level at .6231. This is followed by last week’s multi-year low at .6217.
The low at .6217 is very important. It is the last potential support before the next major target, the May 15, 2020 main bottom at .5921.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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