XE Weekly FX Technical Report

NZD/USD
Last Price: 0.6769
Daily: Gradually narrowing range either side of 0.6800
Weekly: Neutral tone remains in force while below 0.7000
Support 1: 0.6690/00
Support2: 0.6595/05
Resistance1: 0.6900/10
Resistance2: 0.6995/05

Although NZD prices have not managed to build on Q4 2018 gains thus far this year the market is still resisting attempts to break down as well with good support apparent around 0.6700. Any clear breach here would suggest recent consolidation has been distributive instead and on this basis point to further erosion in coming sessions as 0.6600 then 0.6500 areas both come back into focus next. Otherwise an extension beyond 0.6900 then particularly 0.7000 secondary supply might yet turn daily and weekly readings positive instead.

NZD/AUD
Last Price: 0.9634
Daily: Positive with local resistances continuing to attract
Weekly: Broad NZD recovery sequence intact above 0.9375
Support 1: 0.9490/00
Support2: 0.9375/85
Resistance1: 0.9750/60
Resistance2: 0.9875/85

Early January volatility notwithstanding NZD values here have evidently managed to sustain their break from a prior (triangular) range and unless secondary 0.9375 area demand gives way further gains remain readable in coming days/weeks. Some selling pressure exists around 0.9750 but an extension beyond is awaited to target both 0.9875 then 1.0000 areas before more substantial resistance is met again. Pull-backs beforehand are considered corrective and unsustainable with initial buying interest apparent in the 0.9500 zone.

NZD/EUR
Last Price: 0.5987
Daily: NZD still prices stable either side of 0.6000 for now
Weekly: Mkt rangebound unless/until 0.6125 penetrated
Support 1: 0.5940/50
Support2: 0.5865/75
Resistance1: 0.6125/35
Resistance2: 0.6200/10

NZD prices here can still confirm recent consolidation as basing work but the market will need to hurdle 0.6125 at least in order to confirm prior sideways action as accumulative. Once seen sufficient compression already exists to enable a subsequent extension toward 0.6275 if not nearer 0.6350 as well at some stage before more substantial resistance is encountered. However for the moment another down-leg cannot be ruled out either and on this basis any breach of 0.5940/50 demand will expose 0.5875 and 0.5800 first/next.

NZD/JPY
Last Price: 75.68
Daily: Tone still neutral as market attempts to re-accumulate
Weekly: Choppy NZD range in play either side of 75.00 or so
Support 1: 74.90/00
Support2: 73.45/55
Resistance1: 76.50/60
Resistance2: 78.00/10

As elsewhere prices here have not (yet) managed to translate recent relative stability into re-basing work and indeed while circa 78.00 resistance holds the market appears at best rangebound either side of 75.00. Prior weakness evidently failed to sustain below 72.00 and this projected demand point must give way to suggest recent choppy sideways action has been distributive instead. However further preparation looks necessary to improve the underlying tone with initial selling pressure otherwise now visible around 76.50 as well.

NZD/GBP
Last Price: 0.5138
Daily: Market is continuing to focus on local support levels
Weekly: NZD tone still neutral at best while beneath 0.5350
Support 1: 0.5090/00
Support2: 0.5015/25
Resistance1: 0.5200/10
Resistance2: 0.5275/85

NZD price activity here is not encouraging from any obvious bullish perspective with the market evidently struggling to post a significant/secondary low. Despite a positive end to last year local local supports remain vulnerable to attack and although some buying interest should emerge at 0.5100 only beyond distant (tertiary) supply at 0.5350 will improve underlying readings again. Otherwise resistance begins at 0.5200 then 0.5275 areas and as/when 0.5090/00 demand gives way subsequent support looks thin until 0.4950 again.

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