Forex Review Online
No Result
View All Result
  • Home
  • Crypto
  • Education
  • News
start trading today
  • Home
  • Crypto
  • Education
  • News
No Result
View All Result
Forex Review Online
No Result
View All Result
Home ANALYSIS

NZDUSD bounces after testing the lower swing area

A.R Chowdhury by A.R Chowdhury
February 28, 2022
Reading Time: 4 mins read
0
NZDUSD bounces after testing the lower swing area

NZDUSD

NZDUSD sees risk off flows today

RELATED POSTS

EURGBP erases gains and returns to a familiar bias defining level

New highs for US stocks. The Nasdaq continues to lead

USDJPY has 3 key technical levels that have stalled the rally higher today

The NZDUSD yesterday moved to the highest level since January 19 after the RBNZ hiked rates by 25 basis points, and said that it was a close call to raising by 50 basis points. It was the 3rd hike in a row and more are expected going forward.

The high price reached 0.68087. That tested swing highs going back to January 18, January 19, and January 20 near that level.

Since reaching the high, it’s been downhill run ever since with a small pause after the pair broke below its 100 hour moving average (blue line) earlier today currently at 0.6727.

After falling below that level, the price conosolidated, and corrected higher, retesting the moving average. After sellers leaned against the level, and ultimately pushed the price below the 200 hour moving average (green line currently at 0.66936), the selling intensified. Strong dollar buying helped the flows.

The price for the  NZDUSD 
NZD/USD

The NZD/USD is a commonly offered currency pair representing the New Zealand dollar or Kiwi and US dollar.  The pair is popular for exposure into a commodity currency, i.e. the NZD, which helps capture risk appetite for forex traders. Like its Antipodean counterpart, the Australian Dollar, the NZD/USD is seen as a carry trade, due in part to interest rate differentials which favor the NZD. The NZD is the world’s seventh most liquid pair at the time of writing with the USD being the world’s most traded currency and the NZD being the tenth. What Affects the NZD/USD? The NZD/USD is offered at virtually every retail forex brokerage and is a common pair for traders to have experience with.  The pair moves on investor sentiment and can be much more volatile than other pairs such as the EUR/USD, GBP/USD and others. Given New Zealand is the world’s largest exporter of milk powder, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such help move the currency pair.  Other factors of note for the NZD/USD include export volumes to China as well as other important economic data releases from China.  Central banks also play a primary role in the direction of the currency pair with both the US Federal Reserve and the Reserve Bank of New Zealand being closely monitored by investors.  Monetary policy is more than capable of abruptly moving the NZD/USD, which can oscillate much more than other normal pairs.

The NZD/USD is a commonly offered currency pair representing the New Zealand dollar or Kiwi and US dollar.  The pair is popular for exposure into a commodity currency, i.e. the NZD, which helps capture risk appetite for forex traders. Like its Antipodean counterpart, the Australian Dollar, the NZD/USD is seen as a carry trade, due in part to interest rate differentials which favor the NZD. The NZD is the world’s seventh most liquid pair at the time of writing with the USD being the world’s most traded currency and the NZD being the tenth. What Affects the NZD/USD? The NZD/USD is offered at virtually every retail forex brokerage and is a common pair for traders to have experience with.  The pair moves on investor sentiment and can be much more volatile than other pairs such as the EUR/USD, GBP/USD and others. Given New Zealand is the world’s largest exporter of milk powder, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such help move the currency pair.  Other factors of note for the NZD/USD include export volumes to China as well as other important economic data releases from China.  Central banks also play a primary role in the direction of the currency pair with both the US Federal Reserve and the Reserve Bank of New Zealand being closely monitored by investors.  Monetary policy is more than capable of abruptly moving the NZD/USD, which can oscillate much more than other normal pairs.
Read this Term
ultimately bottomed near 0.6630. That was near the top of a swing area between 0.6622 and 0.66313. The price has since bounced and currently trades at around 0.6650.

If a bottom is in (at least temporarily), w all hat would give the dip buyers some added comfort?

The 0.6659 to 0.66669 area would be an area to get to and through. The lower level represents a number of swing lows and swing highs (see green numbered circles). The higher level is the 38.2% retracement of the 2022 trading range. Get above each would give the buyers some breathing room and additional comfort.

Absent that, and the sellers are more in control. The aforementioned swing area between 0.6622 and 0.66313 would be the next target to get to and through. Move below that and traders would target a lower swing area between 0.6588 and 0.6595.

ADVERTISEMENT – CONTINUE READING BELOW

Source link

ShareTweetPin
A.R Chowdhury

A.R Chowdhury

Related Posts

EURGBP erases gains and returns to a familiar bias defining level
ANALYSIS

EURGBP erases gains and returns to a familiar bias defining level

August 14, 2022
New highs for US stocks. The Nasdaq continues to lead
ANALYSIS

New highs for US stocks. The Nasdaq continues to lead

August 14, 2022
USDJPY has 3 key technical levels that have stalled the rally higher today
ANALYSIS

USDJPY has 3 key technical levels that have stalled the rally higher today

August 14, 2022
WTI crude oil futures settle at $92.09
ANALYSIS

WTI crude oil futures settle at $92.09

August 14, 2022
Bitcoin technical analysis, bulls might be giving up soon
ANALYSIS

Bitcoin technical analysis, bulls might be giving up soon

August 14, 2022
The weekend forex technical report for the week of August 15, 2022
ANALYSIS

The weekend forex technical report for the week of August 15, 2022

August 14, 2022
Next Post
EURUSD trades to the lowest level since June 2020, but find support near 1.1100.

EURUSD trades to the lowest level since June 2020, but find support near 1.1100.

Wheat trades to the daily futures limit. Corn also sharply higher

Wheat trades to the daily futures limit. Corn also sharply higher

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended Stories

Gold cracks back below 2011 high at $2021. Run lower continues

August 11, 2020

USD/JPY climbs to session high, moves towards test of key near-term levels

May 7, 2020

Stocks move to new session lows

July 7, 2020

Popular Stories

  • The USD is the strongest and the NZD is the weakest as the NA session begins

    0 shares
    Share 0 Tweet 0
  • New highs for US stocks. The Nasdaq continues to lead

    0 shares
    Share 0 Tweet 0
  • EURGBP erases gains and returns to a familiar bias defining level

    0 shares
    Share 0 Tweet 0
  • What is forex and How does it work?

    0 shares
    Share 0 Tweet 0
  • What is CFD trading?

    0 shares
    Share 0 Tweet 0
Forex Review Online

© 2022 My Forex Review - Designed with Jnews Theme.

Navigate Site

  • Home
  • Crypto
  • Education
  • News

Follow Us

No Result
View All Result
  • Home
  • Crypto
  • Education
  • News

© 2022 My Forex Review - Designed with Jnews Theme.