The New Zealand dollar has carved out the July opening-range just above key weekly support with a strong reversal yesterday threatening a larger recovery in Kiwi. Here are the updated targets and invalidation levels that matter for NZD/USD[1] heading into the close of the week. Review this week’s Strategy Webinar[2] for an in-depth breakdown of this setup and more.
NZD/USD Daily Price Chart
Technical Outlook: In my latest Weekly Technical Perspective on the New Zealand Dollar[3], we highlighted that price had, “stretched into a critical support zone last week at 6663-6717- a region defined by the 61.8% retracement of the 2015 advance and the 100% extension of the 2017 decline. Note that the median-line of the descending pitchfork formation[4] extending off the 2017 highs and further highlights the technical significance of the threshold.”
Price posted an outside-day reversal into support to register a low at 6713 yesterday before reversing sharply. Looks like near-term exhaustion and we’re looking to see if price will validate a larger reversal in Kiwi. Initial daily resistance stands with the 2017 low-day close at 6811 backed by the monthly opening-range[5] highs / May low at 6851/59- a breach there would be needed to suggest a more significant low is in place. Note the pending RSI resistance trigger in the daily momentum profile.
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NZD/USD 120min Price Chart
Notes: A closer look at price action sees NZD/USD trading within the confines of a descending channel off the monthly high with a proposed embedded pitchfork off the recent lows keeping
