New Zealand Dollar Forecast: NZD/USD Establishes Ascending ChannelNZD/USD carves a bullish outside day candle even as the Russia-Ukraine crisis sways
New Zealand Dollar Forecast: NZD/USD Establishes Ascending Channel
NZD/USD carves a bullish outside day candle even as the Russia-Ukraine crisis sways investor confidence, and the exchange rate may stage further attempts to test the January high (0.6891) as an upward trending channel takes shape.
The bullish trend emerged as NZD/USD registered the monthly low (0.6566) on February 1, and it remains to be seen if a similar dynamic will materialize in March as the exchange rate pushes back above the former support zone around 0.6690 (38.2% expansion) to 0.6710 (61.8% expansion).
NZD/USD Rate Daily Chart
Source: Trading View
NZD/USD appears to be on track to test the February high (0.6809) as it bounces back from channel support, with the break/close above the former support zone around 0.6690 (38.2% expansion) to 0.6710 (61.8% expansion) pushing the exchange rate up against the Fibonacci overlap around 0.6770 (23.6% expansion) to 0.6810 (38.2% expansion)
A close above the overlap around 0.6770 (23.6% expansion) to 0.6810 (38.2% expansion) brings the 0.6870 (50% retracement) region on the radar, with a break above the January high (0.6891) opening up the 0.6940 (50% expansion) to 0.6990 (23.6% retracement) area.
However, lack of momentum to close above the overlap around 0.6770 (23.6% expansion) to 0.6810 (38.2% expansion) may keep NZD/USD within the February range, with a move below the 0.6690 (38.2% expansion) to 0.6710 (61.8% expansion) area bringing the 0.6630 (50% expansion) to 0.6640 (23.6% expansion) region back on the radar.
— Written by David Song, Currency Strategist
Follow me on Twitter at @DavidJSong
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