NZD/USD Is in a Downtrend, May Reach the Low of 0.6979

NZD/USD Is in a Downtrend, May Reach the Low of 0.6979

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
The Kiwi has resumed a downward move after rejection from level 0.7300. The pair fell to level 0.7100 and corrected upward. The downward move has resumed after breaking below level 0.7200. The price has broken below 21-day SMA and a break below 50-day SMA will accelerate price movement.

NZD/USD – Daily Chart

Daily Chart Indicators Reading:
The Kiwi has fallen to level 49 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The 50-day SMA and 21-day SMA are sloping upwardly indicating the uptrend.

NZD/USD Medium-term Trend: Bearish
On the 4-hour chart, the NZD/USD pair is now in a downtrend. On January 11 downtrend; a retraced candle body tested 50% Fibonacci retracement level. The retracement indicates that the pair will fall to level 2.0 Fibonacci extension. That is a low of level 0.6979.

NZD/USD – 3 Hours chart

4-hour Chart Indicators Reading
The 50-day and 21-day SMAs are sloping downward. The Kiwi is below the 20% range of the daily stochastic. It indicates that the market has fallen into the oversold region. The kiwi is in a strong bearish momentum.


General Outlook for NZD/USD
The NZD/USD pair is in a downward move. The price has broken below the SMAs which signal a downward movement of the pair. According to Fibonacci tool analysis, the pair will fall to level 2.0 Fibonacci extension or 0.6779 low.


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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.