NZD/USD Price Analysis: Bulls seek a break of key trendline resistance

NZD/USD bears are in the market, short-squeeze-eyed.
Bulls eye a break of the trendline resistance following test below Friday's lows.

Ross J Burland FXStreet

The New Zealand Dollar is lower by some 0.75% towards the close in New York trade and is down for the second straight session, after hitting the strongest level in over five months touched last Thursday. The price is on the front side of the dominant bearish trend and is coming into a coil which will lead to a breakout, eventually:

NZD/USD daily chart

A correction is underway and a continuation will be eyed for in due course.

NZD/USD H4 charts

We had breakout traders in the market and a long squeeze is moving in on prior resistance.

NZD/USD is on the front side of the bearish trendline and may have induced sellers due to the break below the prior day's lows. This leaves the trendline vulnerable to a break thereof and the prior support from which the downtrend originated.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD retreats below 1.3650, looks to post strong weekly gains

GBP/USD loses its traction and trades below 1.3650 after touching its highest level since February above 1.3670 on the back of upbeat UK PMI data. The US Dollar (USD) shows some resilience against its peers, supported by the encouraging PMI prints, and limits the pair's upside. Still, GBP/USD remains on track to end the second consecutive week in positive territory.

EUR/USD stays below 1.1700 after US PMI data

EUR/USD corrects lower and trades below 1.1700 following the bullish action seen in the European session despite the mixed PMI prints from Germany and the Eurozone. Meanwhile, the US Dollar holds its ground heading into the weekend after PMI surveys reaffirmed healthy business activity in private sector. Nevertheless, the pair remains on track to post strong weekly gains.

Gold tests three-month highs near $4,600 as the US Dollar dives

Gold extends gains on Friday, with bulls aiming for a retest of the $4,600 resistance area, the top of the last six months' trading range. Precious metals are gaining momentum, favoured by a sharp US Dollar selloff, following the announcement of a US Treasury plan to boost liquidity to repurchase long-term securities.

Crypto Today: Bitcoin, Ethereum, XRP bulls accelerate rally amid rising ETF inflows

The cryptocurrency market remains bullish on Friday, led by Bitcoin’s surge above $77,000. Altcoins, including Ethereum and Ripple, mirror BTC’s positive outlook, trading near $2,400 and $1.35, respectively.

Week ahead – Fed’s Jackson Hole and Nvidia earnings to dictate markets

Kevin Warsh to make his Jackson Hole debut amid confusing messaging. But a major hawkish surprise unlikely after bond market intervention. Nvidia earnings to also determine market direction as stock rally cools.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.