Market Analysis – Kiwi Loses Ground as Sellers Tread Lower
Kiwi has experienced a decline in value as buyers have lost ground in the market. The battle for dominance between buyers and sellers on the NZDUSD pair has come to an end, with buyers pulling out. This shift in sentiment has led to a growing sell sentiment since the beginning of the week. The buyers have shown weakness and low resilience in the market. This has however created more opportunities for sellers to strengthen their position.
NZDUSD Key Levels
Resistance Levels: 0.63740, 0.62100
Support Levels: 0.59450, 0.58570
In the previous week, market strength was characterized by a low impulse. Both buyers and sellers were consolidating above the significant level of 0.62100. However, the buyers had been on the stronger side since last week, with bullish momentum showing reasonable strength for several months.
The buy trend became more evident after price consolidation above the 0.58000 price zone. Also, the buyers made solid progress, approaching the 0.64000 price level. However, at the beginning of this year, the Kiwi started responding to bearish influences. Sell pressure has caused the price to plunge below the significant zone of 0.62100.
After retesting the middle level of the Bollinger Band, the sellers have taken charge of the market. It is likely that we will see sellers penetrate even lower this week. Traders should anticipate a sell-off, with the price potentially diving towards the significant level of 0.60810.
The Stochastic Oscillator, a technical indicator used to measure momentum, is indicating a lower movement towards the oversold region. This suggests that the Kiwi market is gradually turning to bearish sentiment. It implies that sellers are more likely to overwhelm the market compared to before. This indicates a potential further decline in the value of the kiwi.
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