NZDUSD Faces a Downslide After Failing to Transition to the Upper Range Zone

NZDUSD Price Analysis – September 20

NZDUSD faces a downslide after suffering severe rejection at the 0.71560 transition zone. Buyers had pumped the market up in retaliation to the price plunging below a consolidation phase that had lasted for weeks. The rally pulled price from the 0.68101 key level and drove it beyond the 0.70570 resistance. NZDUSD continued to rise until it reached the 0.71560 transition zone, where it failed to gain ground.

NZDUSD Key Levels

Resistance Levels: 0.70570, 0.71560
Support Levels: 0.69510, 0.68101

NZDUSD Long Term Trend: Bearish

A consolidation phase at the upper ranging zone lasted for 44 days, after which price fell below the 0.71560 transition zone on the 15th of June 2021. The market immediately stabilized itself on the 0.69510 base, which extends to 0.69170. NZDUSD then commenced another ranging movement with 0.70570 acting as a lid from above to confine the market. After much wrangling, bears pushed the market out of consolidation and down to 0.68101.

From here price sprung through the consolidation zone to reach the transition zone where it faces strong resistance. After 9 trading days of struggling, bulls gave up and price began declining. All indications at this level points to the bearish dominance of the market. The MA period 9 (Moving Average) has taken a downward curve above the daily candles. Likewise, the Stochastic Oscillator has taken a huge plunge from the overbought region to the selling half

NZDUSD Short Term Trend: Bearish

Since clashing with the transition zone resistance at 0.71560, price has been dropping consistently, making a continuous lower low and high. Price has now dropped below the 0.70570 key level. Currently, the market is trading around 0.70313 and is presenting a bullish candle. NZDUSD could rise back to retest 0.70570, which would nonetheless create a new lower high. The Stochastic Oscillator has crossed each other in the oversold region and confirms an upward move for a retest. Price is expected to drop further after retesting at 0.70570.

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