NZDUSD Tests Critical Channel Support

FXOpen

The New Zealand Dollar (NZD) extended downside movement against the US Dollar (USD) on Wednesday, dragging the price of NZDUSD to less than 0.6630 despite the release of worse than expected US consumer confidence news. The technical bias already remains bearish because of a Lower Low in the recent downside move.

Technical Analysis

As of this writing, the pair is being traded near 0.6621. A support may be noted near 0.6600, the confluence of psychological number as well as channel support as demonstrated in our daily chart ahead of 0.6346, the swing low of the last major downside move on the daily chart.

2

On the upside, the pair is likely to face a hurdle near 0.6750, the swing high of the last major upside rally as well as the psychological number ahead of 0.6882, the swing high of December 2015. The technical bias will remain bearish as long as the 0.6750 resistance area is intact.

US Consumer Confidence

Consumers confidence fell in February to the lowest level in seven months, as American became a bit more pessimistic about job prospects and business conditions. Big losses in the stock market in early 2016 also added to the anxiety.

The consumer confidence index dropped to 92.2 from a revised 97.8 in January, the Conference Board said Tuesday. Economists polled by MarketWatch had expected a smaller decline to 96.9.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy if we get a valid bullish reversal candle on the daily chart.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News GBP/USD Price Falls to 1.26 after Bank of England Decision

Latest articles

Forex Analysis

EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March

As the EUR/USD chart shows at the start of the European session today, the exchange rate has dropped below EUR 1.08 per US dollar.

Tuesday's news contributed to this. According to Nasdaq.com, on March 26, 2024, The

What Is a Megaphone Pattern and How Can You Trade It?
Trader’s Tools

What Is a Megaphone Pattern and How Can You Trade It?

Chart patterns have been used to analyse financial markets for a long time. One popular formation in forex and other markets is the Megaphone. In this text by FXOpen, we'll explain what the setup is and how to trade using

Indices

NIKKEI-225 Analysis Indicates Possibility of Correction from Historically High Levels

On March 21, the value of the Japanese stock index reached a historical maximum, exceeding the level of 41,100 points. This was facilitated by:

→ Weak yen supporting exporters. It increases the value of profits earned abroad for a large

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.