Short term
Trade view / 22 August 2016 at 0:26 GMT

NZDUSD: Kiwi’s recovery potential remains

Managing Director / Technical Research Limited
New Zealand
Instrument: NZDUSD
Price target:
Market price:

The Northern hemisphere markets are deep into their summer slumber and it's a quiet week for data down under as well.

So NZDUSD will be driven by flows in the next few days with the biggest potential for movement coming on Friday when Federal Open Market Commitee chairman Janet Yellen speaks at Jackson Hole.

Traders will be interested to hear whether she backs up some of the bullish commentary we saw last week from her colleagues, a couple of whom suggested the September 20-21 Fed meeting was “in play” for a rate hike.

Markets are not giving the comments much credence at this stage. In the meantime, the path of least resistance for NZDUSD is up as seen here.

Management and risk description

From an Elliott Wave perspective, I am still interpreting the Kiwi’s advance from its 0.6235 low of last September as a developing “Double Three” corrective structure (refer daily and weekly charts below).

This still gives potential for the Kiwi to extend its recovery toward mathematical resistances about the 0.7500 and 0.7570 levels (see daily chart).

In the short term, support at 0.7200/0.7170 probably holds, as corrective consolidation gives-way to the next rally onto the mid 0.7400’s.


Entry: Kiwi is seen as a buy today at 0.7240/0.7215

0.7067, initially

50% at 0.7460 and 50% at 0.7558 

Time horizon:
At least a few weeks

NZDUSD daily chart (click to expand)
NZDUSD daily chart
Source: ThomsonReuters  

NZDUSD Weekly chart (click to expand)
NZDUSD Weekly Chart
Source: ThomsonReuters  

— Edited by Adam Courtenay

For more on forex click here             

Non-independent investment research disclaimer applies. Read more
Ali Baba Ali Baba
trade doing well so far. thanks


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail