NZD/USD May Resume Selling Pressure, Faces Rejection at Level 0.7037

NZD/USD May Resume Selling Pressure, Faces Rejection at Level 0.7037

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

NZD/USD Price Long-term Trend: Bearish
NZD/USD is in a downward move. The currency pair has been facing rejection from the 0.73 overhead resistances. For instance, on May 28, NZD/USD pair was rejected as the downtrend resumed. After the rejection, the market declines to level 0.6922 and corrected upward.
Meanwhile, on June 18 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the market will fall to level 1.618 Fibonacci extension or level 0.6731.

NZD/USD – Daily Chart

Daily Chart Indicators Reading:
The Kiwi has fallen to level 43 of the Relative Strength Index period 14. The pair is in the downtrend zone and below the centerline 50. The 21-day SMA and 50-day SMA are sloping horizontally indicating the sideways trend.

NZD/USD Medium-term Trend: Bearish
On the 4-hour chart, the Kiwi price has been making a series of lower highs and lower lows. On July 2, the bears failed to break the previous low at level 0.6924 as the market corrected upward. Meanwhile, on July 2 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the market will fall to level 2.0 Fibonacci extensions or level 0.6807.

NZD/USD – 4 Hour Chart

4-hour Chart Indicators Reading
NZD/USD is above the 80% range of the daily stochastic. It indicates that the pair is in a bullish momentum but has reached the overbought region of the market. The market upward move is likely to subside. Sellers are likely to emerge in the overbought region to push prices down.The 21-day and 50-day SMAs are sloping downward.

General Outlook for NZD/USD
The NZD/USD pair is likely to decline as it faces rejection at the recent high. Besides, the pair is in the overbought region of the market. This will cause the currency pair to fall on the downside. According to the Fibonacci tool, the currency pair will fall either to level 0.6807 or 0.6731.

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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.