NZD/USD Price Analysis: Bears unleash on a downside break of Tweezer Bottom, 0.5500 eyed


  • Bears have been infused with fresh blood as the kiwi bulls have failed to defend the Tweezer Bottom.
  • The downside-sloping trendline from 0.5790 will continue to act as a major barricade ahead.
  • The NZD/USD pair is expected to print a fresh 13-year low at around 0.5470.

The NZD/USD pair has displayed a minor pullback move after refreshing its two-year low at 0.5565 in the Tokyo session. The pullback move doesn’t stem from an accumulation base and is expected to conclude sooner, which will trigger further downside in the asset. In early Asia, the asset displayed a bearish open-drive session, which dragged the asset firmly.  

A downside break of a Tweezer Bottom candlestick pattern indicates a fresh downside impulsive wave. Usually, a Tweezer Bottom formation is considered a reversal pattern, however, the market participants have taken the pullback move as an opportunity to create more shorts, indicating that smart money is coming in the counter.

The downward-sloping trendline from May 12 low at 0.6217 will act as a major barricade for the counter. Also, the declining 10-period Exponential Moving Average (EMA) at 0.5790 is signaling more weakness ahead.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the bearish range of 20.00-40.00, which signifies that the downside momentum is intact.

The kiwi bulls could lose display more weakness if the asset drops below Wednesday’s low at 0.5565. An occurrence of the same will drag the asset towards the psychological support and March 2020 low at 0.5500 and 0.5469 respectively.

On the flip side, a decisive break above Monday’s high at 0.5755 will send the asset towards the round-level resistance at 0.5800, followed by Friday’s high at 0.5888.

NZD/USD daily chart

NZD/USD

Overview
Today last price 0.5591
Today Daily Change -0.0114
Today Daily Change % -2.00
Today daily open 0.5705
 
Trends
Daily SMA20 0.597
Daily SMA50 0.6148
Daily SMA100 0.6231
Daily SMA200 0.649
 
Levels
Previous Daily High 0.5722
Previous Daily Low 0.5624
Previous Weekly High 0.6003
Previous Weekly Low 0.573
Previous Monthly High 0.647
Previous Monthly Low 0.6101
Daily Fibonacci 38.2% 0.5685
Daily Fibonacci 61.8% 0.5662
Daily Pivot Point S1 0.5645
Daily Pivot Point S2 0.5585
Daily Pivot Point S3 0.5547
Daily Pivot Point R1 0.5744
Daily Pivot Point R2 0.5782
Daily Pivot Point R3 0.5842

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD fades recovery moves above 0.6700 ahead of RBA Bulletin, Australia Trade Balance

AUD/USD fades recovery moves above 0.6700 ahead of RBA Bulletin, Australia Trade Balance

AUD/USD struggles to defend the latest bullish impulse around 0.6725-30, after bouncing off a one-week low the previous day, as traders await updates/data from Australia during early Thursday.

AUD/USD News

EUR/USD holds above 1.0500, lacks follow-through

EUR/USD holds above 1.0500, lacks follow-through

A risk-averse environment limited EUR/USD gains, but demand for the USD remains scarce. Buyers defending the 1.0500 area, hinting at potential higher highs in the near term.

EUR/USD News

Gold carves out a bullish scenario into key resistance

Gold carves out a bullish scenario into key resistance

Gold price is higher on the day having climbed from a low of $1,768.82 and reaching a high of $1,789.05 so far as the US Dollar tails off in the mid-afternoon session in the US.

Gold News

Ethereum price subject to volatility as Chainlink enables staking on the ETH network

Ethereum price subject to volatility as Chainlink enables staking on the ETH network

Ethereum price has investors dialing in as Network advancements are arousing speculation. Still, the technicals will need to show forth stronger signals to justify opening a long position.

Read more

What happens after the Fed reaches the terminal rate

What happens after the Fed reaches the terminal rate

The discrepancy starts to show. What will the Fed do? For now, the Fed is raising rates to stave off inflation, and are expected to level out at around 5.0%. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures