Market Analysis: NZDUSD sellers trigger another sell clause
NZDUSD is experiencing another downturn this week after a strong bullish purge. The bears have again taken control of the NZDUSD, pushing the price lower. Bulls are currently on the sidelines as sellers dictate the market. The ongoing week is likely to witness a downward trend as sellers dominate.
NZDUSD Key Zones
Resistance Zones: 0.62200, 0.6000
Support Zones: 0.57900, 0.8700
The bulls had been in control, initiating an upward move from the 0.57900 price level at the start of November and the first week of November appeared to be bullish, with the bulls gaining dominance. However, they have retreated as sellers have made their presence known. This week is expected to see more action from sellers. From the look of things, the buyers must pay more attention to have a deliberate breakthrough. The downturn, however, holds the price in control for the most part.
The Momentum indicator on the daily chart indicates a decline in bullish momentum from last week to this week. The Stochastic Oscillator also shows a strong response to the prevailing selling sentiment. The market’s focus has shifted to the sell side, and the daily chart reveals that it’s currently less influenced by bullish sentiment.
Sellers have made a significant impact, but it’s important to note that buyers are not entirely out of the picture. A market comeback is possible that would influence the currency pair. Traders should therefore look vigilantly at price responses as the week plays through.
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