NZDUSD technicals
After initially breaking above the 100-bar MA on the 4-hour chart at 0.5946, NZDUSD gained upside traction, pushing to a high of 0.5968. However, the bullish momentum quickly faded, and the pair has since slipped back below both the 100-bar MA on the 4-hour chart at 0.59464, and, more recently, the 200-hour MA at 0.59378. The pair is now trading near 0.5930.
With upside momentum stalled, the technical bias has shifted back in favor of sellers below the aforementioned moving average levels. The next downside target lies at the 100-hour MA at 0.59063. A break below that level would strengthen the bearish outlook and open the door toward another key MA – the 200-day MA at 0.5883. That will be a critical zone that could either act as a floor or lead to further downside extension.
Earlier this week, the NZDUSD moved down to test the rising 200 bar MA on the 4-hour chart and found buyers (on Monday and Tuesday’s lows). If the selling momentum increases, that MA will be in the back of traders minds.
If the momentum lower fades, getting back above the 100 bar MA on the 4-hour chart at 0.59464 would disappoint sellers and give the buyers more hope and control. There is a ceiling between 0.6018 to 0.60281.
Key technical levels:
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Immediate resistance: 0.5946 (broken 100-bar MA on 4H), 0.5968 (recent high from earlier today)
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Support levels: 0.59063 (100-hour MA), 0.5883 (200-day MA), 0.58579 (the rising 200 bar MA on the 4-hour chart. The lows for the week bottomed near that MA on Monday and Tuesday before racing higher).
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Bias: Bearish below 0.5946 in the short term. , intensifying below 0.59063
Traders should watch whether the 100-BA MA on the 4-hour holds restance. A bounce could attract dip buyers, but failure to hold it likely deepens the pullback.
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