NZD/USD: After the storm, what’s next?

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The kiwi dollar had a rollercoaster period following the elections. Jacinda Ardern’s ascent to leading the country was accompanied by a big fall in the currency, especially due to the plans to change the RBNZ’s mandate. What’s next? Here are two opinions.

Here is their view, courtesy of eFXnews:

NZD/USD: Relatively Calm After A Busy Political Month; What’s Next? – ING

ING FX Strategy Research discusses NZD outlook noting that after an eventful month, this week provides some relative calm for NZD with only second-tier manufacturing PMI and 3Q PPI inflation data to note (both Fri NZ local time).

“The external environment should remain fairly conducive in the near-term, especially if waning tax reform sentiment continues to weigh on the USD. We see greater risks for a move back above 0.70,’ ING argues.

ING is neutral on NZD/USD around current levels, targeting the pair around 0.70 in 1-month.

NZD/USD – Key Trigger Levels For S-Term & M-Term Setups – NAB

NAB FX Technical Strategy Research discusses NZD/USD technical setup, outlining the key trigger levels for holding a bearish bias on the pair. 

Short Term Strategy (0-4 Weeks)• 0.6900/20 to cap bounces this week ahead of a challenge of double bottom range lows at 0.6818. Break of 0.6818 initially targets 0.6700/30.

Medium Term Strategy (4-12 Weeks)• 0.7000/25 remains a firm level of resistance on a multi-week basis.  Weekly close below 0.6818 targets 0.6560/80,” NAB argues.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

2 Comments

  1. Imaan Ahmad on

    Hi Yohay, Could you please advise me with your expertise for a quick query regarding the NZDUSD pair? I made a silly mistake by placing few long orders @ .69 and .689 with heavy leverage and now I am really struggling to figure out as i am running short of liquidity if I should be fueling the stop losses or cut them loose. This maybe my first and last rookie engagement mistake! Hope I can get out of this. Any suggestions or tips would be helpful and much appreciated. Best regards