The New Zealand dollar plummeted on Thursday after yesterday’s rally to .6444 stopped just shortly after the March 9 top of .6448. The price measure suggests that investors are squaring up positions ahead of a key European Central Bank stimulus announcement later in the day. Mixed demand for risk in Asia also weighs on the Kiwis.
Kl. 04:34 GMT traded NZD / USD .6417, down 0.0008 or -0.13%.
Kiwi has been recently supported by strength in commodity prices and gains in world stock markets as more economies reopen. While some exceed expectations, most traders believe the currency will be backed by the country’s continued success in containing coronavirus.
The Kiwi has also been supported by a plunging U.S. Dollar, which has lost value for weeks as the greenback loses its appeal as an active port.
Daily technical analysis of the swing diagram
The main trend is up according to the daily swing chart. Taking yesterday’s high level of .6444 will signal a resumption of the uptrend, while overcoming the swing peak at .6448 will confirm the uptrend.
The prolonged increase in price and time enables the NZD / USD to place a potentially bearish closing price for reversal. This does not change the main trend down, but if confirmed, it can lead to a 2 to 3 day correction.
Daily technical weather fluctuation
The direction of NZD / USD on Thursday is likely to be determined by the trader’s reaction to yesterday’s close of .6426.
A sustained move above .6426 will indicate the presence of buyers. Overcoming .6448 will indicate that the purchase will be stronger. This can trigger a short-term acceleration to the head.
A persistent move below .6426 will indicate the presence of the seller. Taking out the .6360 will indicate that sales will be stronger.
Closing price Reverse top chart pattern
Taking .6444 and then closing lower for the session will form a potentially bearish closing price for reversal. If confirmed, look for the start of a 2 to 3 day correction.
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