The US Dollar strengthened ahead of the New Zealand Dollar on Friday. This change in value is a result of the upcoming US Federal Reserve’s two-day meeting, which is planned to be held on Nov. 2-3. It is highly expected that the federal reserve starts to gradually lower its enormous stimulations. After the tapering, a hike in the rates of the central bank is estimated, however, the traders are not certain of the timing or the extent of these subsequent rate hikes.
The NZD/USD pair declined by 0.0033 or 0.45% to 0.7171.
Analysis of the daily swing chart
According to the daily swing chart, the main trend is on the rise, however, the trend is lower on momentum since the closing price formation was reversed on October 21.
It is estimated that trade through 0.7219 is a signal for continuing the uptrend. On the other hand, a movement below 0.6860 will change the trend down.
The minor trend is also on the rise. A movement beyond 0.7131 will reverse the minor trend from up to down. This reverse confirms the shift in the momentum.
On Friday the minor range was reported to be between 0.7219 and 0.7131. On the other hand, the NZD/USD pair was settled slightly below its pivot on Friday at 0.7175. This decrease in value was after straddling the price throughout the session.
The main range for the pair NZD/USD is from 0.7316 to 0.6806. This pair is currently being traded on the strong side at 0.7121 to 0.7061. Additional support for this pair is estimated to be at the 50% level at 0.7027 and 0.7012.
The trader’s reaction to the 0.7175 prices on early Monday will determine the direction of the NZD/USD pair.
How can a bullish movement change the market?
A sustained movement over the price of 0.7175 is a signal for the presence of buyers. If this upward movement generates enough upside momentum, the price is expected to enter the 0.7217 – 0.7219 range. Moving further up from this range can push the prices further than the recent record of 0.7243. The next large target is to pass the May 26th record of 0.7316.
How can a bearish movement change the market?
A sustained move under .7175 on the other hand, is a signal for the presence of sellers. If this move can generate enough downside momentum, the pair is expected to fall to 0.7131 and heading for 0.7121. This downfall can brin he prices further down to 0.7061.