NZD/USD Finding Support as Buyers Approach the Oversold Region

Estimated Reading Time: 2 minutes

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Azeez Mustapha

Updated: 13 October 2022

Key Resistance Levels: 0.6600, 0.6800, 0.7000
Key Support Levels: 0.6200, 0.6000, 0.5800

NZD/USD Price Long-term Trend: Ranging
NZD/USD pair is in a sideways move. The price has fallen to the support line of the horizontal channel. It is also consolidating above the support line to resume an upward move. It is unclear if the downward move will continue.

Daily Chart Indicators Reading:
The Kiwi has fallen to level 50 of the Relative Strength index period 14. It implies that the pair is in the uptrend zone and above the centerline 50. The 50-day SMA and 21-day SMA are sloping upward. It indicates the previous trend.

NZD/USD Medium-term Trend: Ranging
On the 4-hour chart, the NZD/USD pair is now in a sideways move. The price is still fluctuating between levels of 0.6600 and 0.67000. The price bars are above the support line of the horizontal channel. A break below the current support will mean a further downward movement of the pair. The price will resume an upward move if the current support holds.

4-hour Chart Indicators Reading
The 50-day and 21-day SMAs are sloping horizontally. It indicates that the recent sideways move. The pair is above 20 % range of the daily stochastic. It indicates that the market is in a bullish momentum.

General Outlook for NZD/USD
The NZD/USD pair is in a sideways move. The pair is yet to trend as price consolidates above the support line of the channel. The bears are attempting to break the support line. The price will resume a downward move if successful.

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