NZD/USD Price Analysis: Sellers flirt with 0.6300 with eyes on yearly low
- NZD/USD bears take a breather following the biggest daily fall in a week.
- Short-term SMAs stop bears on the way to weekly horizontal support comprising multi-month low.
- Descending RSI, not oversold, keep sellers hopeful, 100-SMA limits upside momentum.
NZD/USD holds lower ground near 0.6300, after declining the most in a week, as bears await the key New Zealand Annual Budget Release during early Thursday.
In doing so, the Kiwi pair jostles with the 21-SMA and 50-SMA amid a downward sloping RSI (14) line, not oversold.
Not only the RSI but the pair’s inability to cross one-week-old horizontal resistance, as well as stay beyond a monthly descending trend line also keeps NZD/USD sellers hopeful.
That said, the quote’s latest weakness aims the area comprising the monthly low, also the lowest levels since 2020, around 0.6225-15.
Following that, the 0.6200 threshold may offer an intermediate halt before directing bears towards April 2020 peak near 0.6175.
Alternatively, a one-month-old downward sloping resistance line restricts immediate upside around 0.6335, a break of which will direct buyers towards a horizontal region from May 09, surrounding 0.6375-85.
Even if the NZD/USD prices rise past 0.6385, a clear run-up past-100-SMA, close to 0.6390, becomes necessary for the buyers to retake control.
NZD/USD: Four-hour chart
Trend: Further weakness expected
Reprinted from FXStreet_id,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.