NZD/USD Forex Technical Analysis – Strengthens Over .6616, Weakens Under .6602

The New Zealand Dollar is recouping some of its weekly losses early Friday despite another dovish signal from the Reserve Bank of New Zealand on Thursday. The Kiwi is being helped by investors wagering on a Joe Biden presidency and on more U.S. stimulus spending.

A growing expectation that, whoever wins, U.S. stimulus spending will flow has also been weakening the dollar in the short-term, by improving investors’ mood and their willingness to buy riskier assets such as stocks and commodity currencies.

At 03:32 GMT, the NZD/USD is trading .6608, up 0.0026 or +0.39%.

On Thursday, the New Zealand Dollar was the liveliest among G10 currencies, dropping as much as half a percent after central bank officials again hinted they could introduce negative interest rates, though it had mostly recovered in Europe.

Daily NZD/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .6658 will change the main trend to up. A move through .6512 will signal a resumption of the downtrend.

The minor trend is also down. A trade through .6547 will signal a resumption of the downtrend. The minor trend changes to up on a move through .6658.

The main support zone is .6589 to .6540. This zone stopped the selling at .6547 on Thursday.

The minor range is .6658 to .6547. Its retracement zone at .6602 to .6616 is currently being tested.

The short-term range is .6798 to .6512. Its retracement zone at .6655 to .6689 is the primary upside target and potential resistance zone. This are stopped the buying at .6658 on October 6.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the NZD/USD on Friday is likely to be determined by trader reaction to the minor retracement zone at .6602 to .6616.

Bullish Scenario

A sustained move over .6616 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into the resistance cluster at .6655 to .6658.

Bearish Scenario

A sustained move under .6602 will signal the presence of sellers. This move could extend into the main 50% level at .6589. If it fails as support then the price cluster at .6547 to .6540 becomes the primary downside target. #NZD/USD##AFXMarkets#

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