FOREX Chart Of The Day: NZDUSD To Break Key Zone
Hi guys, and welcome to today’s Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to take a look at NZD/USD and see what’s going on here.
I do like the idea of continuing to short the Kiwi. It has lost ground again. If I bring in the heat map or the currency strength and weakness table, we can see that the NZ Dollar has continued to lose ground. I quite like it against the US Dollar because the US Dollar is in extreme weakness. So, if the US Dollar was to start gaining some value, then Kiwi will certainly be one of the casualties in that. I really like the price action, here, on the weekly as well – a nice consecutive weekly bearish close and we’re looking for that to continue into this week.
So, looking at the daily timeframe, the price hasn’t quite formed the change in cycle yet. We’ve got this lower high being formed at the moment. The price rallied up, had this little pullback, and then a breakdown here, but the price never closed below this low, here. It then rallied up and is now heading and making its way down to that point. What we have to be aware of is this level, through there. It is where the market found resistance and support in the past. So, what I’d like to see is if the market continues to break down and break that low. If it does break that low, we’re going to be good for continued short positions here on NZD/USD.
I like Kiwi against other majors as well but Kiwi against the US Dollar is looking really good. If we go to that four-hour, we do have a bit of a change in trend anyway. So, the market was trending back to the upside a little bit and has broken through. I did expect a retest of this low. But, the price hasn’t made its way back up there yet. It’s at that level that we’re talking about. So, I’m going to give you a more detailed view if the price did break through this area, then I would expect a retest and a continuation at that point. A nice level as well – 0.66. So, a decent little zone, through here, that the market could use to break to the downside.
So, NZD/USD is one of my top charts going into this week — keep an eye on this. I expect the NZ Dollar to lose value across other major currency pairs as well, which we’ll take a look at in the future videos. But, keep an eye on this market. It does look like it is going to break down.
Thanks for watching. If you like the content that you see, please like and subscribe to the YouTube channel for more. Watch this break out of this zone, here, and I’ll catch you soon.
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