NZD/USD Forex Technical Analysis – April 24, 2019 Forecast
The New Zealand Dollar is under pressure on Wednesday as traders continue to price in a Reserve Bank interest rate cut for May after Australian data showed inflation slowed sharply last quarter. The Kiwi is also being pressured by a stronger U.S. Dollar, which rose sharply on Tuesday after upbeat U.S. economic data and earnings reduced concerns about a possible economic slowdown and helped stoke appetite for the greenback.
At 04:02 GMT, the NZD/USD is trading .6616, down 0.0043 or -0.64%.
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Daily Technical Analysis
The main trend is down according to the daily swing chart. The next downside target is the January 3 main bottom at .6591. The main trend will change to up on a trade through .6784. A change in trend to up is highly unlikely, but the NZD/USD is down seven sessions from the last main top so it is in the window of time for a closing price reversal bottom.
The main range is .6591 to .6943. Its retracement zone at .6726 to .6767 is resistance.
Daily Technical Forecast
Based on the early price action, the direction of the NZD/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at .6640.
Bullish Scenario
Overtaking and sustaining a move over .6640 will signal the return of buyers. If this creates enough upside momentum then look for a potential rally into a pair of downtrending angles at .6690 and .6699. Since the main trend is down, look for sellers to come in on a test of this area.
Bearish Scenario
A sustained move under .6640 will indicate the presence of sellers. If the downside momentum continues to increase then look for the selling to possibly extend into the main bottom at .6591. This price is a potential trigger point for an acceleration to the downside. The next major downside target is the October 16, 2018 main bottom at .6465.