- NZD/USD turns from yearly high- concentration stays on a exam of near-term uptrend support
- Check out a 2019 projections in a Free DailyFX USD Trading Forecasts
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The New Zealand Dollar pennyless next a weekly opening-range low after branch from operation insurgency yesterday and stays during risk for serve waste opposite a US Dollar streamer into a Mar open. These are a updated targets and cancellation levels that matter on a NZD/USD charts. Review this week’s Strategy Webinar for an in-depth relapse of this setup and more.
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NZD/USD Daily Price Chart
Technical Outlook: In my latest NZD/USD Weekly Technical Outlook we remarkable that Kiwi had, “carved out an even clearer operation between 6707-6941 and a concentration streamer into a tighten of a month is on a mangle of this range.” Price posted a annulment candle off a yearly high-day tighten at 6890 yesterday with movement unwell forward of a 60-threshold (typically bearish).
Daily support is eyed during a connection of a 100 200-day relocating averages during 6750/56 corroborated by a 61.8% retracement of a yearly operation / 2018 trendline support during ~6722 (area of seductiveness for probable depletion / prolonged entries IF reached). A tighten next 6700 would countenance a mangle of a 2019 converging operation with such a unfolding exposing 6633. Key insurgency / broader bearish cancellation solid during 6922/31.
NZD/USD 120min Price Chart
Notes: A closer demeanour during cost movement shows Kiwi branch rom a median-line of an forward pitchfork formation fluctuating off a yearly lows with an embedded forward arrangement gripping a concentration reduce while next 6861. Initial insurgency stands during 6813 with near-term connection support yeed during 6785/90– a mangle next this turn is indispensable to keep a short-bias viable targeting successive objectives at 6750/56 and 6722.
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Bottom line:NZD/USD has incited from operation insurgency with a decrease now targeting near-term connection support. From a trade standpoint, we’re looking for a greeting on pierce reduce towards a reduce together with a mangle next indispensable to keep evident concentration lower. I’ll preference vanishing strength while next 6843 targeting a downside mangle – ultimately, be on a surveillance for depletion on a pierce towards 6700 IF reached.
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NZD/USD Trader Sentiment
- A outline of IG Client Sentiment shows traders are net-long NZD/USD – a ratio stands during +1.12 (52.9% of traders are long) – neutral reading
- Long positions are6.9% reduce than yesterday and 2.2% aloft from final week
- Short positions are 11.6% reduce than yesterday and 13.2% aloft from final week
- We typically take a contrarian perspective to throng sentiment, and a fact traders are net-long suggests NZD/USD prices might continue to fall. Yet traders are more net-long than yesterday though reduction net-long from final week and the multiple of stream positioning and new changes gives us a serve churned NZD/USD trade disposition from a view standpoint.
See how shifts in NZD/USD retail positioning are impacting trend- Learn some-more about sentiment!
Relevant NZD/USD Data Releases
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– Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex