NZD/USD Price Analysis: Braces a corrective pullback towards 0.6800 on the double top formation
- Kiwi bulls have failed to record a fresh yearly high above 0.6926, have resulted in double top formation.
- A range shift in the RSI (14) to 40.00-60.00 indicates a consolidative activity further.
- Bulls are hopeful above 0.6923, which will send the asset towards 0.7000.
The NZD/USD pair is oscillating in a ted narrow range of 0.6866-0.6923 since Thursday after failing to print a fresh yearly high above 0.6926. The kiwi bulls have attracted some significant offers near 0.6923 on Monday, which signals a corrective pullback going forward. Moreover, the asset needs to wait a little more to resume rallying again.
On an hourly scale, NZD/USD has witnessed decent selling pressure after the successful test of March 7 high at 0.6923. Usually, a failure to print fresh highs signifies that investors have sensed it as an expensive bet and have gone for inventory distribution. The trendline placed from February 24 low at 0.6630, adjoining the March 15 low at 0.6729 will remain major support for the asset.
It is worth noting that the Relative Strength Index (RSI) (14) has shifted in a range of 40.00-60.00 from a bullish range of 40.00-60.00, which signals either a consolidation or a downside move in coming trading sessions.
Should the asset drops below the minor trendline around 0.6866, which is placed from March 17’s average traded price at 0.6865, the asset will slip near March 10 low at 0.6811, followed by the broader trendline line placed from February 24 low of 0.6630 at 0.6785.
For the upside, bulls need to overstep March 7 high at 0.6923, which will drive the kiwi bulls higher to 23 November 2021 high at 0.6965. Breach of the latter will push the pair towards the psychological barricade at 0.7000.
NZD/USD hourly chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
