Is The NZD/USD is Looking a Little Toppy? - FX Leaders News
The Kiwi Might Be Weak

Is The NZD/USD is Looking a Little Toppy?

Posted Friday, November 23, 2018 by
Rowan Crosby • 1 min read

The NZD/USD has been relatively strong in the last few weeks, but it appears we might be getting a bit top heavy.

In reality it hasn’t just been the Kiwi that has seen a bounce. All the commodity currencies have been relatively strong.

Both the AUD and CAD have found a degree on buying, certainly outperforming during periods where risk-on is all the rage.

The fact that the USD has fallen back recently has helped contribute to the run, but the chart of the NZD/USD is starting to look a bit toppy for me.


The Kiwi Outlook

We’ve tested the 0.6850 level three times now and each time we’ve not only failed, but we’ve made a lower high.

To me that is a sign of weakness and tells me that there are sellers there.

If we crack the 0.6780 level to the downside then we might very well flush lower. I wouldn’t be adverse to taking a starter short around current levels with a stop above the most recent high.

Add in on a crack of the low and I think we might have an OK trade. Of course, the X-factor at the moment is the USD, but the fact that the NZD has weakened in-line with the USD, suggests to me we might be weak here.

NZD/USD – 240min
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Rowan Crosby is our Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
Related Articles

Leave a Reply

Notify of