NZD/USD Down 4 Pips, in an Uptrend Over Past 90 Days; Nears 20 Day Moving Average

NZD/USD Price Recap

NZD/USD enters today at 0.66304 in US dollars, down 4 pips (0.06%) from the day prior. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was down 3.99% from the day prior, but up 50.5% from the same day the week before. Relative to other instruments in the Forex asset class, NZD/USD ranked 25th yesterday in terms of percentage price change. Let’s take a look at price chart of NZD/USD.

NZD/USD Technical Analysis

The first thing we should note is that NZD/USD is now close to its 20, 50 and 200 day averages, located at 0.6643, 0.6522 and 0.6517 respectively, and thus may be at a key juncture along those timeframes. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 12.5 pips away. Volatility for NZD/USD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving down. Interestingly, a trend in the other direction exists on the 90 day timeframe, where price is headed up. Or to simplify this another way, note that out of the past 10 days NZD/USD’s price has gone up 5 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on NZDUSD, with 8 buy signals on our radar and 28 sell signals. This imputes a buy/sell ratio of 0.29, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Momentum is bearish, confirmed by a strong bearish candle. High probability of continued downside. Would like to ride it to target. Levels on chart, cheers.