Forex NZD/USD Daily: Mixed signals below the Ichimoku cloud
Technical Analysis
The New Zealand dollar – US dollar pair (NZD/USD) finally reached our long-term bearish target and the key support level of 0.73 and broke below it end of May. Currently it is testing the new support and five year low of 0.71 with a bearish sentiment and as expected remains below the Ichimoku cloud while the cloud itself is heading straight, signaling indecisiveness. The RSI is heading straight remaining below the neutrality area.
Sentiment Analysis
The market corrected its declines with a sharp rally on Monday, followed by more bearish days. A Sentiment Index of one of the largest brokers in the US shows that 70% of retail traders are bullish on the NZD/USD pair. The combination of current sentiment and recent changes gives a further mixed trading bias.
Economic Points
Not much Kiwi mover economic data coming out from New Zealand and the pair could be driven mainly by the US dollar. Friday’s OPEC meetings could bring new volatility to the pair.
Trading Idea
Wait for a confirmation before entering a long-term trade.
Suggested stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 0.7100 | 0.73 | 0.7600 |
| 0.6880 | 0.7486 | 0.7741 |
*Important Note: The support and resistance levels are not suitable for all traders and largely depend on your account size, margin and leverage. Book a private lesson to learn how to personalize your account based on our trading guide.
