NZD/USD Is in a Downward Move, Faces Rejection at the Recent High

NZD/USD Is in a Downward Move, Faces Rejection at the Recent High

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
The Kiwi has resumed a downward move after testing level 0.72409. The index has fallen to a low at 0.7187. On December 17 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The NZD/USD pair will rise to level 1.272 Fibonacci extension and reverse. From the price action, the kiwi is facing rejection at the recent high.

NZD/USD – Daily Chart

Daily Chart Indicators Reading:
The Kiwi has fallen to level 68 of the Relative Strength Index period 14. It indicates that the pair is in the 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 is retracing and in a downward move. On December 27 uptrend; a retraced candle body tested 78.6% Fibonacci retracement level. The retracement indicates that the pair will rise to level 1.272 Fibonacci extension and reverse. That is a high of level 0.7176. The price action has surpassed that level and the market is resuming downward.

NZD/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The 50-day and 21-day SMAs are sloping upward. It indicates the previous uptrend. The Kiwi is below the 80% range of the daily stochastic. It indicates that the market is in a bearish momentum.

General Outlook for NZD/USD
The NZD/USD pair is facing rejection at the recent high. Kiwi has fallen to level 0.7187 and a further downward movement is expected. According to the Fibonacci tool, the pair will reverse and return to the 78.6% Fibonacci retracement.



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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.