NZDUSD Is Set to Continue Its Downtrend as It Breaks Through a Significant Key Level

NZDUSD Analysis – Price Breaks Through 0.70400 Key Level

NZDUSD breaks through a significant key level of 0.70400 as the market now resumes its downtrend. Kiwi has been in a consolidation phase from mid-June to mid-August as the market keeps accumulating. The price then broke out downwards to the 0.68000 significant key level. Following that, the buyers then stepped into the market as it gained bullish momentum upward. The price is now seen in a downtrend after reacting at 0.71620. Kiwi is now continuing downward after breaking through the 0.70400 significant key level.

NZDUSD Significant Levels

Resistance Levels: 0.71620, 0.73160, 0.70400
Support Levels: 0.69600, 0.69000, 0.68000
NZDUSD first attained a bullish ride after sharp liquidity run downward to 0.69600. The market then gained bullish momentum and rallied up to the 0.71620 significant level, and a higher high was made at the 0.73160 key level. Kiwi then accumulated between these levels before it breaks down back to 0.69000.

The market, however, continues to range between the significant key levels of 0.70400 and 0.69000. This resulted in indecision in the market, as the bulls and bears continue to fight for dominance. However, the bears gained control as they brought the price down to 0.68000. NZDUSD then changed its course to the 0.71720 key level as the buyers set in. Following a phase change, the market is currently in a decline, and the price has broken through and is projected to exceed 0.70400. Price movement below the middle level is shown by the RSI (Relative Strength Index) indicator. This indicates that the market remains bearish.

Market Expectation

On the 4hour chart, the price is seen to be breaking down after a significant change in the market direction. NZDUSD breaks through the 0.70400 significant key level and it is now making a pullback to this level before continuing. The Stochastic Oscillator indicator shows price movement around the oversold region as it indicates a pullback also. The RSI also indicates that price will do a retest close to this level since it is around the oversold region also. The price is expected to move forward, breaking through other significant zones after a pullback to the 0.70400 significant key level.

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