The New Zealand Dollar is edging higher on Tuesday on increasing appetite for risky assets. The Kiwi is also being underpinned by a rise in the Australian Dollar after the Reserve Bank of Australia left interest rates unchanged earlier in the session.
The Kiwi was also boosted by a strong performance in the Asian equity markets, led by higher mainland Chinese stocks. Meanwhile, investors weighed the potential economic impact of the ongoing coronavirus outbreak that has killed hundreds in China so far.
At 06:55 GMT, the NZD/USD is trading .6472, up 0.0009 or +0.15%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The nearest downside target is the November 25 main bottom at .6395. The main trend will change to up on a move through .6629.
This is highly unlikely, however, due to the prolonged move down in terms of price and time, the NZD/USD is inside the window of time for a potentially bullish closing price reversal bottom.
The main range is .6204 to .6758. Its retracement zone at .6481 to .6416 is potential support. This zone is currently being tested. The NZD/USD is currently trading inside this zone.
The major range is .6791 to .6204. Its retracement zone at .6498 to .6567 is controlling the longer-term direction of the Forex pair. This zone is the next upside target and potential resistance zone.
Daily Technical Forecast
Based on the early price action and the current price at .6472, the direction of the NZD/USD the rest of the session on Tuesday is likely to be determined by trader reaction to .6463.
A sustained move over .6463 will indicate the presence of buyers. This could trigger a labored rally with potential upside targets .6481, .6489, .6498 and .6518.
The downtrending Gann angle at .6518 is a potential trigger point for an acceleration to the upside.
A sustained move under .6463 will signal the presence of sellers. Taking out today’s intraday low at .6449 could trigger an acceleration to the downside with potential targets a long-term uptrending Gann angle at .6424 and a Fibonacci level at .6415.