Wed, Mar 29, 2023 @ 03:06 GMT
HomeContributorsTechnical AnalysisNZDUSD Plummets to Fresh 27-month Low

NZDUSD Plummets to Fresh 27-month Low

NZDUSD has been trending lower since March, generating a profound structure of lower highs and lower lows. Moreover, in the past few sessions, the technical picture has deteriorated even further, with the price recording a fresh 27-month low of 0.5995.

This negative near-term bias is also reflected by the short-term oscillators. The RSI is descending near the 30-oversold zone, while the MACD histogram is extending its retreat below both zero and its red signal line.

Should selling pressures intensify, the price could encounter support at the 27-month low of 0.5995. If that floor collapses, the pair will dive towards levels not seen in the past two years, where the May 2020 low of 0.5920 could provide downside protection. Failing to halt there, the April 2020 support of 0.5840 may halt any further drops.

To the upside, bullish actions could send the price to test the July low of 0.6060. Crossing above this region, the pair might ascend towards 0.6250 or higher to challenge the recent peak of 0.6467. Piercing through the latter, the June high of 0.6575 could prove to be a tough obstacle for the pair to overcome.

Overall, even if NZDUSD has come under tremendous downside pressure, the momentum indicators currently suggest that the pair has not yet reached oversold levels. Therefore, the price will most likely resume its decline into uncharted waters to fresh multi-year lows.
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.

Featured Analysis

Learn Forex Trading