NZD/USD Price Analysis: Pullback looks likely towards 0.6430, downside remains favored
- A pullback towards the supply zone in a 0.6420-0.6423 range will be a bargain sell.
- The RSI (14) has shifted into a bearish range of 20.00-40.00, which bolsters the greenback bulls.
- The 20- and 50-EMAs are sloping lower, which adds to the downside filters.
The NZD/USD pair is juggling in a narrow range of 0.6382-0.6391 in the early Asian session. The asset has turned sideways after a sheer downside move from Thursday’s high at 0.6461. A vertical downside move is expected to bring a pullback move that will provide an opportunity for the initiative sellers to create shorts at optimal levels.
On an hourly scale, the kiwi bulls have witnessed a steep fall after a Double Top formation that dictates a weak attempt of surpassing previous highs. The greenback bulls have dragged the asset below 0.6400 after violating the supply zone, which is placed in a narrow range of 0.6420-0.6423.
Declining 20- and 50-period Exponential moving Averages (EMAs) at 0.6412 and 0.6436 respectively with a wider gap indicating that the downside momentum is intact.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bearish range of 20.00-40.00, which signals a dominant downside momentum.
A pullback move towards the above-mentioned supply zone will trigger a supply action which will drag the asset towards a fresh two-week low at 0.6379, followed by the round level support at 0.6350.
On the flip side, the kiwi bulls could regain their glory if the asset oversteps Thursday’s high at 0.6461, which will send the asset towards Tuesday’s high at 0.6500. A breach of the latter will drive the asset towards Monday’s high at 0.6538.
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.
