NZDUSD monthly trend line retest


The price broke the massive monthly trend line during sell off in March and now we see a retest of that trend line at a strong resistance zone at 0.62. New Zealand was highly effective in its response the pandemic and a pullback of the stock market created a risk on environment for the currency to bounce back. The FED printed trillions of dollars and fear of USD deflation due to oversupply weakened the USD.

NZDUSD may chart

Current level shows consolidation as we wait for potential break of the trend line and resistance to the upside to test the monthly downtrend line in case the risk-on scenario maintains. Or potential bearish continuation, but that would imply fundamental shift to risk off.

FX performance may

This chart shows the May performance of FX pairs, showing clear risk on mood the past month. NZDUSD gained 1.17%, while USD pairs showed weakness against risk on currencies.

Riots in USA are becoming more heated as 41 million unemployed people take to the streets for lack of job or proper support from the government, as the White House mostly cares about big corporations’ stock value and not the average citizen. This could further impact the USD.


Anton is an accomplished Director at Markom Development Ltd where he combines cross functional competencies in staff management, operations planning, customer retention and strategy development. BU...continued

Comments on this analysis

Your email address will not be published. Required fields are marked *

Latest Related News

US Dollar strength fully resumes

Dollar Index reaches major upside target and is at a pivotal point (DXY forecast)Euro-Dollar futures has major support close (EURUSD forecast)Aussie breaks key support  (AUDUSD forecast)Kiwi posts major negative (NZDUSD forecast)USD-Loonie breaks up (USDCAD forecast) Continued

US Dollar looking vulnerable

Pound Breaks up (GBPUSD)Dollar-Yen close to breaking down (USDJPY)Aussie and Kiwi get close to major monthly upside targets (AUDUSD and NZDUSD)Euro-Pound breaks down (EURGBP) Continued

Major reversal on Dollar Index (DXY)

Negative signals on the Euro and Pound (EURUSD and GBPUSD forecasts)Aussie and Kiwi remain in sideways phase (AUDUSD and NZDUSD forecasts)Euro-Pound approaches major support (EURGBP forecast) Continued

S&P 500 poised for a more bullish signal

Macroeconomic/ geopolitical developments The “risk on” theme continues in August, albeit rather unenthusiastic.This “risk on” leg has been reinforced this week with wider, global financial markets indicating a more positive economic outlook, as we review in the ‘global financial market developments’ section below. The macroeconomic was broadly positive again, though US Retails Sales slightly disappointed on Friday.There have been some pockets of improvements for COVID-19… Continued

Quiet conditions in Forex

Positives appear on Aussie and Kiwi (AUDUSD and NZDUSD)Whilst Euro-Pound posts a major negative (EURGBP) Continued

Forex Brokers in your location


79% of retail investor accounts lose money


78,6% of retail investor accounts lose money


74,9% of retail investor accounts lose.


73,9% of retail investor accounts lose.