Technical Analysis – NZDUSD battles with 61.8% Fibonacci
September 14, 2023 4:25 pm
NZDUSD pauses decline at a fresh 9-month low of 0.5858
Hovers around 61.8% Fibonacci retracement of the 0.5510-0.6535 upleg in the past two weeks
Despite recent bounce momentum indicators remain tilted to the bearish side
NZDUSD has been stuck in a steep downtrend since mid-July when it posted a fresh five-month high of 0.6410. Even though the pair appears to have found its footing after recording a fresh nine-month low of 0.5858, the price has been struggling to surpass the 61.8% Fibo of 0.5902 in the past few sessions.
Should the price extend its short-term downtrend, initial support could be met at the recent nine-month bottom of 0.5858. Sliding beneath that floor, the pair may descend towards the 78.6% Fibo of 0.5730. A violation of that zone could pave the way for the September 2022 support of 0.5598.
On the flipside, if the bulls regain the upper hand, they will attempt to push the price above the 61.8% Fibo of 0.5902. Piercing through that wall, the pair could advance towards the 50.0% Fibo of 0.6023 before the 38.2% Fibo of 0.6144 gets tested. Even higher, the 23.6% Fibo of 0.6294 might curb the pair’s upside.
Overall, NZDUSD is slowly starting to show signs of recovery following its decline to a fresh 9-month bottom. However, the road to recovery seems rather long as the price is trading way below both its 50- and 200-day simple moving averages (SMAs).
NZDUSD pauses decline at a fresh 9-month low of 0.5858
Hovers around 61.8% Fibonacci retracement of the 0.5510-0.6535 upleg in the past two weeks
Despite recent bounce momentum indicators remain tilted to the bearish side
NZDUSD has been stuck in a steep downtrend since mid-July when it posted a fresh five-month high of 0.6410. Even though the pair appears to have found its footing after recording a fresh nine-month low of 0.5858, the price has been struggling to surpass the 61.8% Fibo of 0.5902 in the past few sessions.
Should the price extend its short-term downtrend, initial support could be met at the recent nine-month bottom of 0.5858. Sliding beneath that floor, the pair may descend towards the 78.6% Fibo of 0.5730. A violation of that zone could pave the way for the September 2022 support of 0.5598.
On the flipside, if the bulls regain the upper hand, they will attempt to push the price above the 61.8% Fibo of 0.5902. Piercing through that wall, the pair could advance towards the 50.0% Fibo of 0.6023 before the 38.2% Fibo of 0.6144 gets tested. Even higher, the 23.6% Fibo of 0.6294 might curb the pair’s upside.
Overall, NZDUSD is slowly starting to show signs of recovery following its decline to a fresh 9-month bottom. However, the road to recovery seems rather long as the price is trading way below both its 50- and 200-day simple moving averages (SMAs).
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