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  • New Zealand Dollar fell to one-month low after dovish RBNZ policy update
  • A break of near-term chart support hints at push below 0.72 figure ahead
  • Short position re-established after pop on jobs data stops out earlier trade

TheNew ZealandDollar has dropped to touch the lowest level in a month against its US counterpart, with a break of near-term chart support warning of deeper losses ahead. The latest push lower comes courtesy of adovish RBNZ policy announcement, building on an earliersentiment-inspired breakdown.

From here, a daily close below the 38.2% Fibonacci expansion at 0.7140 opens the door for a challenge of the 50% level at 0.7049. Alternatively, a reversal back above the 23.6% level at 0.7254 sees the next major upside barrier at 0.7434, a swing top marked by the September 20 high.

The NZD/USD short trade triggered at 0.7275 was stopped out on an upswing driven byupbeat employment data, a move quickly unwound as the RBNZ policy call hit the wires. The position has now been re-established at 0.7227, initially targeting 0.7140. A stop-loss will be activated on a daily close above 0.7264.

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NZD/USD Technical Analysis: Deeper Downturn Seen Ahead

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or@IlyaSpivak on Twitter

Source https://www.dailyfx.com/forex/technical/home/analysis/nzd-usd/2018/02/08/NZDUSD-Technical-Analysis-Deeper-Downturn-Seen-Ahead.html?DFXfeeds=forex:technical:home:analysis:nzd-usd



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