NZD/USD Is Retracing as the Market Reaches an Overbought Region

NZD/USD Is Retracing as the Market Reaches an Overbought Region

Key Resistance Levels: 0.7000, 0.7200, 0.7400
Key Support Levels: 0.6200, 0.6000, 0.5800

NZD/USD Price Long-term Trend: Bullish
Since January 6, the Kiwi has been fluctuating between levels 0.7100 and 0.7300. The pair have been trying to move up but faces resistance at the recent high. The market is likely to move up after some retracement.

NZD/USD – Daily Chart

Daily Chart Indicators Reading:
The Kiwi has risen to level 62 of the Relative Strength Index period 14. It indicates that the pair is in an uptrend zone. The 50-day SMA and 21-day SMA are sloping upwardly indicating the uptrend.

NZD/USD Medium-term Trend: Bullish
On the 4-hour chart, the NZD/USD pair has resumed upward. On February 9 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the pair will rise to level 1.272 Fibonacci extensions. That is a high of level 0.7341.

NZD/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The 50-day and 21-day SMAs are sloping upward. The Kiwi is above the 80% range of the daily stochastic. It indicates that the market is a bullish momentum and has reached the overbought region of the market.

General Outlook for NZD/USD
The NZD/USD pair is still fluctuating between levels 0.7100 and level 0.7300. The price is yet to break out of this range. Presently, the Kiwi is retracing from the recent high. The upward move will resume after a minor resistance.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.