June 09, 2021|The Forex Secret –NZDUSD represents the economy of the US and New Zealand where the current price is moving within extreme volatility due to the decision from fundamental releases.
The US Fundamental releases are not satisfactory to consider the US Dollar as strong as we have seen in the recent Non-farm payroll report that disappointed market participants. On the other hand, New Zealand is facing a business disruption from the recent increase in the number of COVID-19 infections and the slowdown in the Chinese export data.
The lack of business activity influenced market participants to wait and watch and find reasons to rely on a movement. Let’s have a look at where NZDUSD may head from the technical analysis:
NZD/USD Technical Analysis: Can Buyers Lose Momentum?
NZDUSD started the consolidation since the price moved above the 0.7150 event level in mid of April. Later on, the price made the high at 0.7300 level but failed to move beyond the range between 0.7150 to 0.7300 level.
In this price content, the most recent daily candle is trading below the dynamic 20 EMA on the D1 chart and heading downside. Therefore, as long as the price is trading below the high of the most recent bearish candle it has a higher possibility of moving lower towards the immediate support of 0.7150. On the other hand, a stable daily close below 0.7150 may take the price lower towards 0.6947 level.
However, the price is going through an uncertainty where the Aroon Down is above the Aroon Up and reached the 100 level. Therefore, the bearish pressure has not formed yet. So the strong bearish pressure may come as soon as the price breaks below the 0.7150 level.
- NZDUSD Market Sentiment: Bearish
- Possible Bearish Target: 0.7150 & 0.6947
- Invalidation level: 0.7205
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