NZD/USD Approaches Overbought Region, May Face Selling Pressure

NZD/USD Approaches Overbought Region, May Face Selling Pressure

Key Resistance Levels: 0.64000, 0.65000, 0.66000
Key Support Levels: 0.58000, 0.57000, 0.56000

NZD /USD  Long-term Trend: Bullish
NZD /USD pair is in an ascending channel. The Kiwi is currently rising and approaching level 0.63000. It is rising but approaching the overbought region of the market. The market may reach the overbought condition at level 0.63000.

NZD/USD – Daily Chart

Daily Chart Indicators Reading:
The 50-day SMA and the 21-day SMA are sloping upward indicating the uptrend. The SMAs have a bullish crossover. The Kiwi has risen to level 61 of the Relative Strength Index. This indicates that the pair is in the uptrend and also above the centerline 50.

NZD /USD Medium-term Trend: Bullish
On the 4-hour chart, the pair is in a bull market. The price is making a series of higher highs and higher lows. It is currently trading at level 0.62163. As price is approaching the overbought region it may face resistance at level 0.63000.

NZD/USD – 4 Hour Chart

4-hour Chart Indicators Reading
Presently, the 21-day SMA and 50-day SMA are slowing upward indicating the upward. The pair is above 80% range of the daily stochastic. This indicates that the pair is in the overbought region. Although in a trending market, the overbought condition may not hold, sellers may eventually emerge.

General Outlook for NZD /USD
The Kiwi has risen to an overbought region of the market. The upward move may soon be interrupted. The uptrend will resume after the retracement. The market is expected to reach level 0.63000 before a retracement.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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