NZDUSD finds buyers at key support level


New Zealand Dollar/US Dollar (NZDUSD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team

Highlights

NZDUSD finds buyers at key support level
NZDUSD closes higher for the 4th day in a row
NZDUSD closes within previous day's range

Overview

Moving higher for the 4th day in a row, NZDUSD finished Wednesday at 0.6732 gaining 18 pips (0.27%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (NZDUSD as at Sep 16, 2020):

Daily technical analysis candlestick chart for New Zealand Dollar/US Dollar (NZDUSD) as at Sep 16, 2020

Wednesday's trading range has been 57 pips (0.85%), that's slightly below the last trading month's daily average range of 64 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NZDUSD.

After trading down to 0.6702 earlier during the day, the forex pair bounced off the key technical support level at 0.6703 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on September 8th, NZDUSD gained 1.00% on the following trading day.

Though NZD/USD is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.

With prices trading close to this year's high at 0.6789, upside momentum might accelerate should the currency be able to break out to new highs for the year.

Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for NZD/USD. Out of 71 times, NZDUSD closed lower 56.34% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.34% with an average market move of -0.24%.

With three of the other Major FX Pairs closing higher and three closing lower today, the winners of the day are GBPUSD surging 0.61% and USDCHF gaining 0.14%. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more


Market Conditions for NZDUSD as at Sep 16, 2020

Loading Market Conditions for NZDUSD (New Zealand Dollar/US Dollar)...
Latest Report:

NZDUSD pushes through Thursday's high

Sep 18, 2020
Looking for USDNZD instead? Click here
Trending Assets

Upgrade your trading!

Get the stats behind the charts

Find out what happened when New Zealand Dollar/US Dollar traded like this in the past. See the odds for each technical pattern with expected gain and loss.

Find out more
Top Movers
You have free reports remaining. Subscribe for unlimited access...SUBSCRIBELOGINGO!