NZD/USD Reaches Overbought Region, May Reverse at Level 0.6713

NZD/USD Reaches Overbought Region, May Reverse at Level 0.6713

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

NZD/USD Price Long-term Trend: Bullish
NZD/USD has risen to the overbought region. It may face rejection at level 0.6700. Since July, the pair has been fluctuating between levels 0.6600 and 0.6800.

NZD/USD – Daily Chart

Daily Chart Indicators Reading:
The Kiwi has risen to level 57 of the Relative Strength Index period 14. It indicates that the pair is now in the uptrend zone. The 50-day SMA and 21-day SMA are sloping horizontally indicating the sideways move.

NZD/USD Medium-term Trend: Bearish
On the 4-hour chart, the NZD/USD pair was earlier in an upward move. The price has reached the overbought region. On October 21 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. This indicates that the Kiwi will rise and reverse at level 1.272 Fibonacci retracement level. That is the pair will reverse at level 0.67133.

NZD/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The 50-day and 21-day SMAs are sloping upward. It indicates that the pair is in an uptrend. The pair is above the 80% range of the daily stochastic. It indicates that the market is in a bullish momentum but Kiwi is now trading in the overbought region.

General Outlook for NZD/USD
The NZD/USD pair has risen to the overbought region of the market. Sellers may emerge to push prices down. According to the Fibonacci tool, the market will reverse at level 1.272 Fibonacci extension level. That is a low of 0.6713.



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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.