- The formation of the Tweezer Tops candlestick pattern indicates temporary exhaustion in the upside momentum.
- A rangebound structure near the 200-EMA on a lower timeframe depicts a make or a break opportunity.
- The asset is auctioning above the 61.8% Fibo retracement at 0.6100.
The NZDUSD Pair is walking on thin ice around the immediate support of 0.6140 in the early Asian session. The asset has turned sideways amid ambiguity in the market mood. S&P500 was punished after Target Corporation (NYSE:TGT) projected a bleak outlook. Also, the US dollar index (DXY) struggled as fears over the Russia-Poland noise got vanished.
Meanwhile, the 10-year US Treasury yields are facing immense pressure as investors are betting over a less-aggressive approach adaptation by the Federal Reserve (Fed) ahead. The long-term yields have dropped below 3.7%.
NZDUSD daily chart
On a daily scale, the asset is displaying signs of loss in the upside momentum. The major has formed a Tweezer Tops candlestick pattern, which indicates the availability of significant offers at elevated levels. In the candlestick formation, the highs of both candlesticks remain almost the same and the formation of long wicks is bolstering the strength-losing structure.
Also, the pair has climbed above the 61.8% Fibonacci retracement (placed from the August 12 high at 0.6470 to October 13 low at 0.5512) at 0.6100, which generally leads to a corrective move before an impulsive rally.
NZDUSD 15-minute chart
On a 15-minute chart, the asset is oscillating in a range of 0.6130-0.6160 around the 200-period Exponential Moving Average (EMA). The Relative Strength Index (RSI) (14) is hovering in a 40.00-60.00 range, which indicates that investors are awaiting a potential trigger for a decisive move.
For an upside move, the asset has to cross the round-level resistance of 0.6200, which will drive the asset near August 25 high at 0.6250, followed by July 22 high at 0.6304.
On the contrary, the Kiwi bulls could lose strength if the asset drop below Wednesday’s low at 0.6129, which will drag the asset toward Tuesday’s low at 0.6085. A slippage below the latter will drag the asset toward November 10 high at 0.6041.
|Today last price||0.6149|
|Today Daily Change||-0.0012|
|Today Daily Change %||-0.19|
|Today daily open||0.6161|
|Previous Daily High||0.6204|
|Previous Daily Low||0.6085|
|Previous Weekly High||0.613|
|Previous Weekly Low||0.5841|
|Previous Monthly High||0.5874|
|Previous Monthly Low||0.5512|
|Daily Fibonacci 38.2%||0.6158|
|Daily Fibonacci 61.8%||0.613|
|Daily Pivot Point S1||0.6096|
|Daily Pivot Point S2||0.6031|
|Daily Pivot Point S3||0.5977|
|Daily Pivot Point R1||0.6215|
|Daily Pivot Point R2||0.6269|
|Daily Pivot Point R3||0.6334|
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.