Thu, Jan 27, 2022 @ 15:28 GMT
HomeContributorsTechnical AnalysisNZDUSD Bounces Off 76.4% Fibonacci But Negative Bias Prevails

NZDUSD Bounces Off 76.4% Fibonacci But Negative Bias Prevails

NZDUSD buyers have emerged around the 0.6734 level, which is the 76.4% Fibonacci retracement of the up leg from 0.6510 until the 0.7464 peak. That said, it appears that they are incapable of terminating the one-month decline from the 0.7217 high. The dipping simple moving averages (SMAs) are starting to confirm a growing downward trend in the pair.

The short-term oscillators are reflecting a slight increase in bullish momentum, but given the current overwhelming downward pressures, it looks unlikely that this may endure. The MACD, far beneath the zero mark, is attempting to climb above its red trigger line, while the RSI is finding difficulty improving in bearish territory. The bullish stochastic oscillator is hinting that upside forces have yet to fully evaporate.

If the 0.6803 level denies upward development in the pair, sellers could face an initial support band between the 76.4% Fibo of 0.6734 and the 0.6718 barrier. Should the descent in the pair resume, the lower Bollinger band at 0.6688 could delay the test of a limiting section among the 0.6613 and 0.6587 lows from the beginning of November 2020. If this gives way too, the broader uptrend could be at risk as the bears confront the 0.6552 obstacle and the support base of 0.6487-0.6520.

Otherwise, if the price surges over the 0.6803 level, resistance may originate from the 0.6857 inside swing low until the 61.8% Fibo of 0.6875. Overshooting this barrier, the approaching mid-Bollinger band and nearby 0.6910 obstacle could try to impede advances from challenging the resistance zone moulded between the 50.0% Fibo of 0.6987 and the 100-day SMA at 0.7006. From here, buyers would need to surpass the tough 0.7055-0.7079 resistance border and the upper Bollinger band at 0.7100 to reinstate confidence in the pair.

In conclusion, NZDUSD is sustaining a sturdy negative bearing below 0.6803 and the 0.6857-0.6875 barrier, which may endure for a little while longer.

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