Technical Analysis

NZDUSD Sees Strengthening Bearish Momentum In Near Term

Typography

NZDUSD has a negative undertone as the flow is back to the downside following a break below the key 0.6900 level.

On the 4-hour chart, the RSI is bearish while the 20 and 50-period moving averages are negatively aligned.

The rapid pullback from yesterday’s 0.6916 high suggests NZDUSD does not have enough momentum to resume the uptrend from 0.6780 to 0.6945 (November 17-28 rise).

As long as NZDUSD remains above the 0.6816 low then the pair is expected to remain neutral and to consolidate the recent gains. A move back above 0.6900 would shift focus back to the upside to target 0.6916 and set the market on a path towards 0.7000.

Meanwhile, breaking below the 0.6816-0.6800 zone could see a re-test of the 0.6780 low and likely see the start of a new downtrend.

The fact that the market has retraced more than 61.8% of the 0.6780 to 0.6945 upleg keeps the NZDUSD vulnerable to additional weakness.

XM.com
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.
More from the author