After finding a base of sorts at the mentioned lows, NZD/USD threatens a price correction as it exchanges 0.8260 ahead of the closing bell in New York. Price has broken below 50 EMA (0.8270) support on the 4-hour chart and now offers immediate resistance, with offers possibly located at 0.8280 and the psychological 0.8300 mark.
The pair looks set to print a pin bar on the daily chart, a price pattern that often forms at market highs and lows. Could NZD/USD now be poised for a bearish correction? Possibly. Bears continue to defend the 0.8330 resistance zone and price may be looking for a deeper pullback from channel resistance measured from the peak of June 21 to that of July 5.
If NZD/USD does manage to target lower levels in the global day ahead, support is noted at 0.8233 (April 30 high), 0.8215 (21-day EMA) and 0.8185 (Aug 23 high). If Wednesday’s Asia-Pacific session shows consolidative price action, offers may lay at 0.8273 (23.6%, 0.8335/0.8255 decline), 0.8285 (38.2%) and 0.8295 (50%).