NZD/USD Price Analysis: Kiwi throws up the best reversal signal of the session
- NZD/USD is the worst-performing major on Friday down 1.27%.
- The price has broken a key trendline and support zone on the 4-hour chart.
NZD/USD 4-hour chart
There has been a key reversal on the daily NZD/USD chart and zooming in on the 4-hour you can see why. The price had been struggling for most of the session but when the non-farm payroll data was released things got from back to worse and the pair fell further.
Looking at the chart below, the price has test the red resistance line at 0.6594. More importantly, the black trendline has broken to the downside. The next support on the way down could be just below 0.6520. The price has also made the low high but now all that is left to confirm the trend change is the lower low wave.
The indicators have turned bearish too. The MACD histogram is now red and the signal lines have crossed over to the downside. The Relative Strength Index is very close to the oversold level but has not yet printed below 30.
Next week the market will get the latest RBNZ rate decision. They might be concerned about the strength of the NZD even though it has fallen today. There is not expected to be any movement on rates but there may be an adjustment to QE.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
