Technical Analysis – NZDUSD edges lower after creating double bottom in near term
January 24, 2019 10:26 am
NZDUSD has retreated from the 0.6805 resistance level and the 38.2% Fibonacci retracement level of the downleg from 0.7390 to 0.6423, around 0.6794 after the pullback from the double bottom on 0.6705. The short-term bias looks negative as the MACD keeps losing ground with weak momentum above its trigger and zero lines, while the RSI seems to be making its way down towards the 50 neutral mark, risking a move to bearish territory.
The 40- and the 20-simple moving averages (SMAs) at 0.6760 and 0.6750 respectively could be critical levels for steeper bearish actions if the pair continues the negative movement. 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 the 23.6% Fibonacci of 0.6650.
However, if the pair reverses back to the upside and rise above 0.6805, investors could make a pause at the 0.6847 resistance. More increases could send the pair towards the next hurdle of 0.6880, registered on December 18.
Overall, kiwi/dollar has reversed back to the downside in the 4-hour chart, slipping below 0.6805, however, the SMAs are ready to post a bullish crossover, indicating a possible rebound on them.
NZDUSD has retreated from the 0.6805 resistance level and the 38.2% Fibonacci retracement level of the downleg from 0.7390 to 0.6423, around 0.6794 after the pullback from the double bottom on 0.6705. The short-term bias looks negative as the MACD keeps losing ground with weak momentum above its trigger and zero lines, while the RSI seems to be making its way down towards the 50 neutral mark, risking a move to bearish territory.
The 40- and the 20-simple moving averages (SMAs) at 0.6760 and 0.6750 respectively could be critical levels for steeper bearish actions if the pair continues the negative movement. 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 the 23.6% Fibonacci of 0.6650.
However, if the pair reverses back to the upside and rise above 0.6805, investors could make a pause at the 0.6847 resistance. More increases could send the pair towards the next hurdle of 0.6880, registered on December 18.
Overall, kiwi/dollar has reversed back to the downside in the 4-hour chart, slipping below 0.6805, however, the SMAs are ready to post a bullish crossover, indicating a possible rebound on them.
Related Posts: