Price Analysis – NZDUSD Continues Bearish Agenda
NZDUSD continues to push down on the 0.69400 support to go lower. The market entered into the year 2021 on a bullish trend as shown by the MA period 100 (Moving Average). In particular, from the 2nd of November to the 1st of December 2020, there was an upsurge in price, in which NZDUSD rose over 5% in two weeks. The market continued into the new year with the same momentum but with slightly less volatility.
NZDUSD Key Levels
Resistance Levels: 0.73000, 0.71300, 0.69400
Support Levels: 0.67800, 0.67200, 0.66000
The market kept moving up an ascending trend line till it hit a 3-year high at 0.74600. Immediately after, the price fell to the trend line. Sellers then maintained pressure on the trend line till it gave way to further price fall. NZDUSD eventually dived below the MA period 100 and fell to 0.69400 support. At this level, bulls gained energy again and began working the market back up. It moved above the 100 MA but the uptrend line turned into a barrier for price.
With support from 0.71300, the market tested the uptrend line about three times without success. Price then slumped past the 100MA back to 0.69400. Bears have encamped at this key level to trap price from rising. The candle today has recorded success in eventually breaching the support and it remains to be seen if this is a false break out or if it will lead price to more downside.
After several hits on the 0.69400 key level, the market has finally found a way through it. Price will now aim to descend to the next support at 0.67800. All indications point to a continual bullish movement.
The MA period 100 is now bending towards the bearish direction of the market. The MACD (Moving Average Convergence Divergence) has its signal lines already plunging below the zero level. This accompanies the large bearish histograms that have already formed on the MACD chart.
NDZUSD is expected to fall to 0.67800 support.
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