NZDUSD Fails to Uphold Its Bullish Drive

NZDUSD Analysis – The Price Fails to Maintain Its Bullish Momentum and Falls to 0.66060

NZDUSD fails to uphold its bullish drive and drops to a 2-month low at 0.66060. The price had bounced off a confluence of a downtrend line and the 0.65330 demand level. Then the price followed another uptrend line, along which it rose through several significant levels. Eventually, the market climbed to the year’s highest price level, at 0.70360. NZDUSD failed to get past here and slumped downward continuously.

NZDUSD Important Levels

Supply Levels: 0.68000, 0.69460, 0.70360
Demand Levels: 0.65330, 0.66060, 0.67140
The market’s general trend has been one of the downsides since last year. However, there is much turbulence in the market as buyers try to redirect the general price direction. The price fails to maintain the upward drive, and the move breaks down to fall to lower demand levels. The latest attempt by the buyers comes after NZDUSD bounced off from a 2-year low at 0.65330.

Buyers expended strength to push the market to reach a higher price level. Therefore, in a month between February and April, the price rose more than 7% to reach 0.70360. Having stretched itself thus far, the market fails to go beyond this resistance zone and begins a slump towards a two month low. The EFI (Elders Force Index) has fallen deep into a negative value.

Market Expectation

On the 4-hour chart, when the price weakened, the price first dropped to strong support at 0.67140. The buyers’ attempt to rally from here fails at 0.68000. Hence, NZDUSD drops further to 0.66060. The Stochastic lines’ upturn suggests that buyers would try to rally again from here, but the further downward movement is expected towards a 2-year low at 0.65330.

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