NZD/USD Price Analysis: Technical setup on 4H continues to flag bearish risks


  • NZD/USD displays a bear flag on the four-hour chart.
  • Risk-off mood-led DXY strength keeps sellers hopeful.
  • RSI points south below the midline, allowing more declines.

NZD/USD is meandering near daily lows just above 0.6900, almost unchanged on the day, as the bears await a strong catalyst for the next move lower.

The return of risk-off trading in Asia, amid mounting concerns over the Delta covid strain cases and worries of economic slowdown once again, lifts the safe-haven demand for the US dollar at the expense of the risk-sensitive kiwi.

The Kiwi was the weakest across the G10 currencies on Tuesday, despite markets witnessing a brief turnaround. At the press time, the spot is trading at 0.6913, having hit daily lows at 0.6907.

Looking at it technically, the recent sell-off that followed a brief consolidative stint so far this Wednesday has taken the shape of a bear flag.

Bears now await a fresh impetus to yield a downside breakout of the bearish flag, by beating bullish commitments at 0.6905.

Sellers would then target the multi-month lows of 0.6881, below which the 0.6850 psychological level could come into play.

A sustained break above the rising trendline resistance at 0.6933 will invalidate the bearish formation, unleashing a meaningful recovery towards the downward-sloping 21-Simple Moving Average (SMA) at 0.6960.

However, the Relative Strength Index (RSI) pointing south while just above the oversold region, suggests that a potential downswing could be in the offing.

NZD/USD four-hour chart

NZD/USD additional levels to watch

NZD/USD

Overview
Today last price 0.6913
Today Daily Change -0.0003
Today Daily Change % -0.04
Today daily open 0.6918
 
Trends
Daily SMA20 0.6999
Daily SMA50 0.7104
Daily SMA100 0.7122
Daily SMA200 0.708
 
Levels
Previous Daily High 0.6955
Previous Daily Low 0.6881
Previous Weekly High 0.7046
Previous Weekly Low 0.6917
Previous Monthly High 0.7289
Previous Monthly Low 0.6923
Daily Fibonacci 38.2% 0.6909
Daily Fibonacci 61.8% 0.6927
Daily Pivot Point S1 0.6881
Daily Pivot Point S2 0.6844
Daily Pivot Point S3 0.6807
Daily Pivot Point R1 0.6955
Daily Pivot Point R2 0.6992
Daily Pivot Point R3 0.7029

 

 

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