Is The NZD/USD Running into Resistance?
Rowan Crosby • 1 min read
The NZD/USD has had a nice bounce off some recent lows and in truth, we really have the Fed boss Jerome Powell to thanks for that.
Of course, his dovish outlook two days ago sent the USD tumbling and many of the majors jumped. The NZD/USD rallied strongly as expected.
However, as we can see on the chart, the Kiwi has run right back up into resistance and is starting to look a little weak.
My thinking is that I can see a lot of wicks into resistance. That tells me that every time we try to bid up the NZD/USD, the sellers push it straight back down.
In fact a wick suggests that the selling is in fact a fair bit faster than what it went up.
My only concern at the moment is that the USD is going into an unpredictable weekend. Where the US and China are preparing to sit down and discuss trade. The USD could well go either way and that makes this trade a bit tricky in my opinion.
Given the fact that we will potentially be quiet heading into the weekend, might make me sit on my hands.
Either way, from a purely technical perspective it does look like there is selling at resistance.