Welcome to the Forex technical analysis section. I would like to clarify that this analysis of mine in no way represents financial advice but a current photograph of the markets. I therefore invite you to take inspiration and operate according to your own rules and strategies.
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After five days of decline the NZDUSD price, on Friday 27 March 2021, rebounded on the price structure of 0.6943 and then lateralized around the 0.6950 level (5-minute chart) reversing and pointing towards the 0.7000 price level, psychological threshold.
Most traders have focused on USD data, the Green is flexing its muscles, and fluctuating data from the New Zealand economy.
Today the price has returned to test the psychological threshold of 0.7000, an important price structure where the fate of the Kiwi is played out.
DISCLAIMER
Trading is a high risk activity, protect your capital through the use of stop loss, making intelligent use of leverage and not investing more than you are willing to lose. The author of the post declines any responsibility for any losses incurred as a result of decisions made after reading this article. The information contained below is for informational purposes only. CFDs are complex instruments, therefore adequate knowledge is required before making any investment. Thank you for your kind attention!
DISCLAIMER
Trading is a high risk activity, protect your capital through the use of stop loss, making intelligent use of leverage and not investing more than you are willing to lose. The author of the post declines any responsibility for any losses incurred as a result of decisions made after reading this article. The information contained below is for informational purposes only. CFDs are complex instruments, therefore adequate knowledge is required before making any investment. Thank you for your kind attention!
Economic situation of New Zealand
Although New Zealand has managed the coronavirus pandemic optimally, the numbers regarding the economy have photographed a situation in the dark that highlights the weakness of the New Zealand economy.
The New Zealand economy recorded a 1% contraction in Q4.
Also on the import-export side, the data are in negative territory, imports fell by $ 46 million while exports fell by as much as $ 416 million.
On the American side, the USD Index gained 1.13% in the week just ended, dragging the kiwi. USA strengthened by the vaccination campaign that proceeds without delay and lays a solid foundation for the recovery of the American economy.
Looking at the four-hour chart, we can see the important selloff had in the week after the break of the neckline of the bearish head and shoulders that finished forming on March 18, 2021.
The price has repeatedly retested the 200-period exponential average upwards, failing and triggering the descent towards the 0.6900 level, target of the sellers.
Taking a look at the daily chart we can see the big bearish head and shoulders formed at the end of the big uptrend that started in June 2020.
Where will the price go?
No one knows, after last week’s selloff it bounced close to the 200-period exponential moving average and retraced to the 0.236 Fibonacci level.
In the next few days we will find out where the traders will push the price, if the retracement will extend or if it will continue its descent towards lower price levels by retesting the 0.6800 level where the two highs were formed in September 2020.
In case you have specific requests, do not hesitate to contact me at acetrader@forex-expert.net . I will personally replay asap!
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