NZDUSD Bulls Fail to Sustain the Market Rally

NZDUSD Analysis – Bulls Fail to Sustain the Market Rally Past the 0.70490 Resistance

NZDUSD bulls fail in their bid to continue the market rally beyond the 0.70490 resistance level. The price rally began from critical support at 0.65330 as bulls regrouped to stop the downtrend in the market. NZDUSD started climbing an upward trendline by which it was able to bypass several key levels. Nonetheless, when the price approached the 0.70490 resistance, it weakened and fell below the trendline.

NZDUSD Important Levels

Resistance Levels: 0.70490, 0.72900, 0.74580
Support Levels: 0.64010, 0.65330, 0.68000
NZDUSD has been under immense downward pressure since the turn of the year, and the price can be seen dipping downward. The market has dropped more than 12% from January to April. Nevertheless, bulls can be seen trying to lift the price at intervals. The latest effort by the bulls comes from the 0.65330 resistance level.

However, the latest rally by the buyers seems to have come to an abrupt end below the 0.65330 supply level. NZDUSD has broken below its uptrend line, but buyers might still retain hope as the market is held up at 0.68000, and the present candlestick is bearish. This might also be a retest of the trendline before dropping lower. Meanwhile, the RSI (Relative Strength Index) has fallen below zero for the first time since January.

Market Expectations

Like on the daily chart, there is a long row of dots above the 4-hour charts as the market breaks below the uptrend line. In the short time frame, the RSI has dropped to the oversold region border, ready for a retracement. The bears are poised to continue the general downward trend after the bulls fail to sustain the market rally. NZDUSD will aim for a new low at 0.64010.

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