NZD/USD selling interest in progress; hits a one-week low.

NZD/USD is continuing this week’s sell-off with strong momentum, reaching a one-week low around 0.6730 and at the same time confirming the start of a bearish movement. The short-term bias looks negative as the MACD keeps losing ground below its red trigger line, while the RSI seems to be making its way down beneath the 50 neutral level, moving towards the oversold territory.

The 0.6705 could be a critical level for steeper bearish actions if the pair continues the negative tendency. Also, the 0.6670 could attract some attention, taken from the low on January 4, while a significant leg below this hurdle could open the door for the next support of 0.6610.

However, if the pair reverses back to the upside and rise above 0.6752, investors could make a pause at the 40- and then at the 20-simple moving averages (SMA) around the 0.6800 handle. If the price continues to extend gains, resistance could come next somewhere near the latest high of 0.6847.

Overall, NZD/USD has reverted back to the downside in the 4-hour chart, slipping below the SMAs, which are ready to post a bearish cross in the near future.


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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Source: XM

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