NZDUSD Analysis – Rejection of Buyers Give Room for More Bearish Outlook
NZDUSD Price May Drop When Set to release for Trading. The market has indicated a stop to buying opportunities following a price swing beyond the 0.60910 significant level. The trendline has served as a strong fortress against Kiwi market buyers. This is because they have been unable to penetrate beyond it. Instead, prices will continue to rise and trade lower. The sellers are currently in the supply of price activity, as the stochastic oscillator is now positioned to ride lower on the daily chart. Traders can therefore cause more supply to flow back beyond the 0.60910 key zone as momentum expands.
NZDUSD Key Zones
Resistance Zones: 0.69800, 0.64610
Support Zones: 0.60910, 0.55450
The sellers have been on their toes since the beginning of this year. The bear market has been consistently making its way lower as the Kiwi price swings lower. Before the price recovered, buyers made a swing to the 0.69800 resistance level. The sellers dominated as the currency pair struggled to consolidate within the trend line channel. In the middle of October, the sellers broke from the trend zone to extend down to the 0.55450 key zone. However, as the price rises, the buyers become more active.
The crossing of the moving averages signaled an opportunity for a bullish breakout as buyers drove growth back above the 0.60910 key level. The signal lines on the MACD (moving average convergence and divergence) indicator have indicated a cross in the market. The stochastic, which has also stayed long in the overbought region, is now trading lower as sellers are currently set to ride lower.
Following buying repudiation, the bears are poised to trade lower. Traders should prepare for a selling moment beyond 0.60910 as the price will trade back into the trend line zones. The MACD indicator is now trending lower as sellers look to release price flow back into old zones. Before the further breakdown, a drop to 0.60910 will be observed.
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