NZD/USD Price Analysis: Kiwi suffers as risk-off mode kicks in
|- NZD/USD has fallen sharply and trades 0.81% lower on Thursday.
- The price met some resistance a the 127.2% Fib extensions.
NZD/USD 4-hour chart
NZD has struggled today as the currency is often correlated with the risk environment. The NZD/USD had been living on borrowed time after the last dovish RNBZ changes not really having a material effect on the NZD at the time. It seems now there has been an additional excuse for a correction.
Looking at the chart, the price found some resistance at the 127.2% Fibonacci extension. This is also very close to the blue resistance zone from a previous wave back in December 2019. On the downside, the move stopped at a support level which had been tested four times recently. This was at the psychological 0.67 figure but if it does break the red internal trendline is lying in wait.
The indicators are pretty mixed at the moment. The MACD histogram is in the red but the signal lines are still above the mid-level. The Relative Strength Index is close to the oversold zone but a move back above 50 could indicate the uptrend is back on.
Overall, this is still an uptrend but watch out for a lower high lower low pattern. If the risk environment doesn't improve there could be some more pain to come but tomorrow the market gets the latest NFP figure and this is sure to inspire some volatility.
-637347622491712808.png){kind=link}
Additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.