NZDUSD Analysis-Kiwi Falls Out as Trend Goes Lower Beyond 0.60000 Key Level
NZDUSD sellers fall out of the trend channel as price action trades lower to the 0.60000 key level. The bears are in cap season currently as we continue to see their strength dominating the market tendency. Ever since sellers called the short, we have seen bearish strength capitalizing on several key levels. Last week’s trade chose to be a different ball game for many traders when they could have attempted to push the price upward to continue its swing action on the daily chart.
NZDUSD Market Levels
Resistance Levels: 0.69790, 0.65830
Support Levels: 0.62240, 0.60000
However, what eventually took place in the Kiwi market was a breakout from the trending channel. Following the breakout from the 0.60000 key zone, the buyer went back to hold this key zone before we get to see sellers going southward. The bear market continues to remain solidly downward, and we anticipate more retracements in the coming weeks before more selling sessions on the NZDUSD market. For a while, the New Zealand dollar struggled to hold against the US dollar index as prices began to fall in August 2021.
The bear market swings into action after coming into close contact with the 0.69790 key zone. At this junction, a play of dormancy has been seen in the Kiwi market. The buyers are hoping for a retracement as the ADX (Average Directional Index) indicator has reached its peak, thereby showing selling strength will start to decline at any moment. The Stochastic Oscillator Indicator is also tagged in the oversold section as we anticipate room for buying retracement.
The 4hr chart pictures selling delivery below the trending channel. Since the NZDUSD price has broken through the bottom channel, we expect to see price retracement before more selling activity. The ADX is also at the peak of decline on the 4hr chart, as price retracement is bound to take place before the selling moment commences.
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