- 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
-638042399545119016.png)
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
-638042399641952058.png)
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.
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