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.

Rajan Dhall, MSTA FX Daily

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.

Additional levels

NZD/USD

Overview
Today last price	0.6602
Today Daily Change	-0.0085
Today Daily Change %	-1.27
Today daily open	0.6687

Trends
Daily SMA20	0.6618
Daily SMA50	0.6524
Daily SMA100	0.6272
Daily SMA200	0.6363

Levels
Previous Daily High	0.669
Previous Daily Low	0.6628
Previous Weekly High	0.6716
Previous Weekly Low	0.6619
Previous Monthly High	0.6716
Previous Monthly Low	0.644
Daily Fibonacci 38.2%	0.6666
Daily Fibonacci 61.8%	0.6652
Daily Pivot Point S1	0.6647
Daily Pivot Point S2	0.6606
Daily Pivot Point S3	0.6585
Daily Pivot Point R1	0.6709
Daily Pivot Point R2	0.673
Daily Pivot Point R3	0.6771

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.

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