Slow Day, but New Highs for the Kiwi

In the world of forex – which still holds the undisputed title of the “Largest Market in the World” – a rarity occurred in the form of a slow day. Volume, which is typically hard to measure, appeared to be low as most of the majors traded in tight ranges. On the plus side, a dry spot like this is often a great time to reflect and plan future trades, or to explore potentially profitable markets that are often overlooked. Today, the New Zealand Dollar might have hit a turning point, topping out the charts with a high of .7121 and potentially reaching a multi-month peak. A slow and steady rise to the current top has left the Kiwi with only a few options. The first is to hold steady at its newfound support and resistance levels, which is a real possibility with the NZD holding its own with a stronger economy versus many of its rivals. The second is to break into new highs and push even more into uncharted territories, an option that might come true if traders find weaker data from the Kiwi’s counterparts and New Zealand produces a new round of strong numbers to keep this trend going. The third is a slow but steady retraction from this past month’s gains, which would occur if any positive news was released in another part of the world. On a personal note, I find the NZD/USD pair to be a great market with big long-term trends that are a technician’s dream. Currently, the pair is trading at .7096 as we head into the evening session. David Hilgeman, XPRESSTRADE Analyst