- NZD/USD remains pressured around six-week low marked on Monday.
- Falling wedge formation teases buyers to take a risk but RSI hints at further downside.
- Convergence of the 100-SMA and 200-SMA appears a tough nut to crack for bulls.
NZD/USD prints a three-day downtrend while posting mild losses around 0.6115 during Thursday’s Asian session. In doing so, the Kiwi pair stays near the lowest levels in 1.5 months, tested earlier in the week.
That said, the quote’s latest weakness could be linked to the U-turn from a three-week-old resistance line forming part of the falling wedge bullish chart pattern. The downside momentum also takes clues from the RSI (14).
Hence, the quote’s further weakness towards the weekly bottom of 0.6100 can’t be ruled out.
However, the stated wedge’s bottom and the yearly low marked in July, respectively around 0.6065 and 0.6060, could test the NZD/USD bears.
It should be noted that the RSI might have turned oversold around the yearly low, which in turn signals a corrective pullback, failing to portray the same could quickly drag the quote towards the 0.6000 psychological magnet.
On the contrary, an upside break of the 0.6145 hurdle will confirm the bullish chart pattern but the NZD/USD buyers will need validation from the 50-SMA level surrounding 0.6170.
Also acting as the key upside hurdle is the 100 and 200 SMA confluence, near 0.6260-55.
NZD/USD: Four-hour chart
Trend: Limited downside expected
Additional important levels
|Today last price
|Today Daily Change
|Today Daily Change %
|Today daily open
|Previous Daily High
|Previous Daily Low
|Previous Weekly High
|Previous Weekly Low
|Previous Monthly High
|Previous Monthly Low
|Daily Fibonacci 38.2%
|Daily Fibonacci 61.8%
|Daily Pivot Point S1
|Daily Pivot Point S2
|Daily Pivot Point S3
|Daily Pivot Point R1
|Daily Pivot Point R2
|Daily Pivot Point R3
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.