Sat, Jan 28, 2023 @ 20:04 GMT
HomeContributorsTechnical AnalysisNZDUSD Bearish in Short-Term; Risk Tilted to Downside after Bearish Crossover of...

NZDUSD Bearish in Short-Term; Risk Tilted to Downside after Bearish Crossover of Moving Averages

NZDUSD has maintained a bearish phase in the short term since September 20. Risk is clearly tilted to the downside and further weakness in the market could see prices drop another leg lower to extend the bearish phase from the 0.7434 high.

For now, downward momentum has weakened as RSI and MACD are flat on the 4-hour chart. Both indicators in bearish territory which keep the possibility for NZDUSD moving lower again.

Prices declined steadily from the 0.7434 high before steadying around the key psychological level at 0.7200. Then there was a sharp decline from 0.7205 earlier this month. A daily close below 0.7131 (August 31 low) would indicate that the market has moved into a bearish phase with the next target at 0.7055. Breaking below the key 0.7000 area would increase downside pressure and the focus would turn to the next major low at 0.6817.

A rise above 0.7200 would help the market challenge the September 29 high at 0.7243. NZDUSD would need to rise above the 50-period moving average at 0.7290 to see a more sustained reversal in the current trend and give scope to target the September 20 peak at 0.7434.

The September 26 bearish crossover of the 20-period MA with the 50-period MA on the 4-hour chart puts near-term risk squarely on the downside. Only a move back above 0.7200 would ease immediate pressure.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
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