NZD/USD Up 62 Pips, in a Downtrend Over Past 30 Days; Eyes 100 Day Average

NZD/USD Price Recap

NZD/USD is up 62 pips (0.96%) since yesterday (with its current price near 0.64634), marking the 2nd day in a row it has gone up. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 9.71% from the day prior, but down 12.68% from the same day the week before. Relative to other instruments in the Forex asset class, NZD/USD ranked 3rd yesterday in terms of percentage price change. The price chart of NZD/USD below illustrates.

NZD/USD Technical Analysis

Notably, NZD/USD is now close to its 20, 50, 100 and 200 day moving averages, which may act as price barrier for the asset. 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 100 day average, which is 5.1 pips away. In addition to the moving average crossover, NZD/USD may have broken its trend on the 14 day basis, as the trend’s momentum appears to be slowing down. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. Or to simplify this another way, note that out of the past 14 days NZD/USD’s price has gone down 10 them.

A final note on correlations: over the past week, the currency pair bearing the strongest correlation to NZD/USD has been NZD/CAD — not terribly surprising, given that NZD is in both currency pairs. As for pairs with the least correlation, look no further than EUR/GBP if you’re focused on just this past week, or GBP/CAD for a look at a broader, two week window.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on NZDUSD, with 19 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 1.46, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

I put a fib retracement tool on that big green candle……It will retrace now!…After the retracement…