Technical Analysis – NZDUSD falls back towards 5-month low
May 1, 2024 3:27 pm
NZDUSD declines sharply after rebound falters
Price approaches is lowest level in five months
Oscillators are stuck in negative territories
NZDUSD has been in an aggressive downtrend since its double rejection at the 0.6217 region in early March. Although the bulls showed some signs of life following the bounce off the five-month bottom of 0.5851, the pair is back on track to extend its series of lower highs and lower lows.
Should the retreat extend, the pair may face the 0.5858-0.5851 range, defined by the recent five-month bottom and the September-November 2023 support. A violation of that region could pave the way for the 2023 low of 0.5772.
On the flipside, bullish actions might help the price reclaim 0.5899, which is the 78.6% Fibonacci retracement of the 0.5772-0.6380 upleg. Conquering this barricade, the bulls could attack the recent deflection point of 0.5983. Even higher, the 61.8% Fibo of 0.5899 could prevent further advances.
Overall, NZDUSD has been on the retreat again following its inability to rebound from 2024 lows. Hence, a break below the 0.5851-0.5858 fortified zone may accelerate the latest slump.
NZDUSD declines sharply after rebound falters
Price approaches is lowest level in five months
Oscillators are stuck in negative territories
NZDUSD has been in an aggressive downtrend since its double rejection at the 0.6217 region in early March. Although the bulls showed some signs of life following the bounce off the five-month bottom of 0.5851, the pair is back on track to extend its series of lower highs and lower lows.
Should the retreat extend, the pair may face the 0.5858-0.5851 range, defined by the recent five-month bottom and the September-November 2023 support. A violation of that region could pave the way for the 2023 low of 0.5772.
On the flipside, bullish actions might help the price reclaim 0.5899, which is the 78.6% Fibonacci retracement of the 0.5772-0.6380 upleg. Conquering this barricade, the bulls could attack the recent deflection point of 0.5983. Even higher, the 61.8% Fibo of 0.5899 could prevent further advances.
Overall, NZDUSD has been on the retreat again following its inability to rebound from 2024 lows. Hence, a break below the 0.5851-0.5858 fortified zone may accelerate the latest slump.
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