NZD/USD Forex Technical Analysis – Nearest Resistance is Retracement Zone at .7275 to .7306
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Worries over a possible trade war, new tariffs against China and the possibility of as many as four rate hikes this year by the Fed, weighed on prices, driving the New Zealand Dollar lower for the week.
The NZD/USD settled the week at .7211, down 0.0067 or -0.93%.
Traders may also be positioning themselves ahead of the Fed’s interest rate decision and economic projections on Wednesday as well as Thursday’s Reserve Bank of New Zealand rate statement and monetary policy decision.
Weekly Technical Analysis
The main trend is down according to the weekly swing chart. However, momentum has been weak since the week-ending February 16.
The minor trend is also up. A trade through .7185 will change the minor trend to down. This should lead to a quick test of the next minor bottom at .7175.
The short-term range is .7175 to .7437. Its retracement zone at .7275 to 7306 is the primary upside target. This zone has also acted like resistance the last three weeks.
The main range is .6780 to .7437. Its retracement zone at .7108 to .7031 is the primary downside target. Since the main trend is up, we could see a technical bounce on the first test of this zone.
Weekly Technical Forecast
Based on last week’s close at .7211, traders will have two choices this week.
If bullish investors take control then look for a possible rally into .7275 to .7306. Overcoming .7306 will signal the buying is getting stronger.
If bearish investors take control then look for sellers to go after the minor bottoms at .7185 and .7175. Taking out these levels could drive the NZD/USD into the uptrending Gann angle at .7140.
The angle at .7140 is very important to the structure of the chart pattern because it has provided direction since the week-ending November 17, 2017. Look for a technical bounce on the first test of this angle.
If .7140 fails as support then look for the sell-off to extend into the main 50% level at .7108.
This article was originally posted on FX Empire