HomeContributorsTechnical AnalysisNZDUSD Plunges Below 0.6800 and the Uptrend Line

NZDUSD Plunges Below 0.6800 and the Uptrend Line

NZDUSD is moving back to a negative ground after it failed to cross above the short-term uptrend line in the preceding days. The MACD oscillator is losing momentum below its trigger line and around the zero level, while the RSI is pointing south in the negative territory, both suggesting that the next move could be to the downside.

In the bearish scenario where the 38.2% Fibonacci retracement level of the down leg from 0.7220 to 0.6524 at 0.6790 halts upside movements, the market could retest this level ahead of touching the 0.6725 barrier. Even lower, investors could shift attention to the 23.6% Fibonacci of 0.6687 before slipping to the 0.6590 barrier.

Should the price close comfortably above the 50.0% Fibonacci of 0.6870, traders could add more value to the pair, pushing the market up to 0.6890 slightly below the 200- and 20-day simple moving averages (SMAs) at 0.6900 and 0.6913 correspondingly. The 61.8% Fibonacci at 0.6950 and the 0.7000 mark have been strictly acting as resistances as well and therefore should be in focus.

In brief, NZDUSD is in a negative mode in the short-term timeframe as it continues the bearish move below the ascending trendline.

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