You are here: Home > articles > Forex > Technical Analysis – NZDUSD eases a bit following sharp upside rally
Technical Analysis – NZDUSD eases a bit following sharp upside rally
November 1, 2018 12:26 pmVideo
Latest News
- Technical Analysis – NZDUSD bulls show up before RBNZ rate announcement April 9, 2024
- Trading Signals for GOLD (XAU/USD) for April 9-11, 2024: sell below $2,364 (6/8 Murray – overbought) April 9, 2024
- Will Friday’s data add to hopes of UK exit from recession? – Preview April 9, 2024
- ECB meeting looms: what to expect April 9, 2024
- EUR/USD: Waiting for price turbulence April 9, 2024
- Technical Analysis – EURUSD remains above SMAs with weak momentum April 9, 2024
- BoC to put June rate-cut on the map-tentatively – Preview April 9, 2024
- Forex forecast 04/09/2024: EUR/USD, GBP/USD, Oil and Bitcoin from Sebastian Seliga April 9, 2024
- Video market update for April 09, 2024 April 9, 2024
- Technical Analysis – EURJPY rises towards 16-year high April 9, 2024
- Market Comment – Gold shines bright, yen knocks on intervention door April 9, 2024
- Technical Analysis – AUDUSD steady after several sessions of gains April 9, 2024
- Technical Analysis – GBPUSD capped by 50-day SMA April 9, 2024
- Trading plan for GBP/USD on April 9. Simple tips for beginners April 9, 2024
- Trading plan for EUR/USD on April 9. Simple tips for beginners April 9, 2024
- Forecast for EUR/USD on April 9, 2024 April 9, 2024
- Forecast for GBP/USD on April 9, 2024 April 9, 2024
- Forecast for USD/JPY on April 9, 2024 April 9, 2024
- EUR/USD and GBP/USD: Technical analysis on April 9 April 9, 2024
- Bitcoin: Target for this bull cycle is $300,000 April 8, 2024
NZDUSD recorded a stunning rally over the last three sessions in the 4-hour chart, creating a new one-month high of 0.6615. Currently, though, the pair is on the backfoot and the technical indicators suggest that the market could ease a little bit in the short-term.
The RSI is moving marginally south after the bounce off the overbought levels, while the stochastic oscillator is showing signs for a potential retracement in price action. The Stochastics indicate that a pullback is not far off since the oscillators are in overbought levels. Still, this is more likely to happen if the blue % K line finally forms a bearish cross with the red %D line.
Should the market lose some ground after the sharp buying interest, support could be met at the 23.6% Fibonacci retracement level of the downleg from 0.7050 to 0.6423, around the 0.6572 barrier. A significant leg below this area could send prices towards the 20-simple moving average (SMA), which is currently fluctuating around 0.6550 before the market retests the 40-SMA of 0.6533. Then, if the market fails to hold above this level, the next stop could at the 0.6505 hurdle.
On the flip side, if the pair surpasses the intraday high, immediate resistance could be met at the 0.6638 barrier, taken from the high on September 28. Steeper increases could drive the price north towards the 38.2% Fibonacci region of 0.6665.
Looking at the bigger picture, NZDUSD penetrated to the upside of the medium-term descending trend line, which has been holding since June 6, changing the bearish outlook to neutral. More advances above 0.6700 could give signals for a steeper upside correction.
Related Posts: