NZD/USD Price Analysis: Bears take control in the open

NZD/USD bears in control at the start of the week.
Eyes on the support structure in the US dollar.

Ross J Burland FXStreet

With spreads wide at the start of the day, NZD/USD has opened with a significant gap to the downside:

15-min chart

Meanwhile, the overall technical picture for the pair is bearish according to the W-formation on the daily chart as follows:

In meeting resistance, the bears can now target the confluence of the 62% retracement that aligns with both the 21-EMA and the prior highs as a presumed support structure.

1-hour chart

With the price in bearish conditions according to the Momentum indicator and while below a 38.2% Fibonacci retracement of the bearish impulse, bears can look to engage and target the daily support structure.

DXY analysis

The bearish bias aligns with the bullish technical conditions and market structure in the DXY for the week ahead.

Daily chart

4-hour chart

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD trims intraday gains, stays flat around 1.1630

EUR/USD struggles to find direction and trades in a narrow channel on Monday. Investors refrain from taking large positions ahead of this week's critical Fed policy meeting, allowing the pair to stay in a consolidation phase following two consecutive weeks of bullish action. US Dollar gains ground as risk aversion kicks in.

GBP/USD edges lower toward 1.3300 as markets turn cautious

GBP/USD corrects lower toward 1.3300 on Monday after posting gains in the previous week. The markets adopt a cautious stance ahead of the highly-anticipated Fed meeting, making it difficult for the pair to gather bullish momentum.

Gold remains seases below $4,200 as markets gear up for Fed

Gold turned south after Wall Street's opening, trading south of $4,200. The US Dollar finds additional legs on a souring mood on Monday as market participants prepare for the upcoming Fed meeting, which will provide key insights into the short-term policy outlook.

Bitcoin and Ethereum aim for breakouts as Ripple holds at $2

Bitcoin, Ethereum, and Ripple record a minor recovery on Monday, starting the week on a positive note. The retail demand for major cryptocurrencies remains strong despite outflows from Bitcoin and Ethereum Exchange Traded Funds.

The Silver disconnection is real

Silver just hit a new all-time high. Neither did gold, nor mining stocks. They all reversed on an intraday basis, but silver’s move to new highs makes it still bullish overall, while the almost complete reversals in gold and miners make the latter technically bearish.