Market Analysis – Kiwi Traders are Testing Ground for Breakthrough
NZDUSD seeks a breakout as traders battle for strength. The Kiwi (New Zealand Dollar) is currently testing the ground in hopes of a breakthrough. It has been several days, and the market has yet to witness a significant pullback. The buyers, who had a strong presence in the market, have recently been pushed out. This came following the resistance encountered at the significant level of 0.63600.
Kiwi Key Levels
Resistance Levels: 0.63600, 0.62100
Support Levels: 0.60910, 0.58500
For months, the bulls have maintained a stronger position in the market. Starting from the rise at the 0.57700 significant level, buyers managed to sustain their upward ride until reaching the important level of 0.63600. However, as we entered the new year, the buying momentum came to a halt, giving sellers the advantage. The bears stepped in and led the price down to the critical level of 0.62100 this week.
Currently, the momentum is lagging, with both buyers and sellers remaining unyielding in their quest for a breakthrough. The bulls are struggling to revive their strength, while the sellers are testing the ground to push for a breakthrough lower. Additionally, the Moving Average crossing indicates the possibility of another golden cross soon, which is likely to favor the sellers. However, the buyers are still attempting to hold on to their strength in the market.
The Money Flow Index (MFI) is hovering around the 50.00 level, suggesting a neutral stance from market participants. The battle for strength is expected to continue throughout the week, with the significant level of 0.62100 serving as a testing ground for both buyers and sellers.
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