NZD/USD traded lower today, after it hit resistance at 0.6708. Overall, the rate is trading below the 0.6735 barrier, which is the lower bound of the sideways range that contained most of the price action between November 25th and January 21st, and thus, we would consider the short-term outlook to be bearish.
At the time of writing, the rate is trading near yesterday’s low of 0.6660, the break of which would confirm a forthcoming lower low and perhaps pave the way towards the low of November 4th, at 0.6615. If the bears are not willing to stop there, then we could see them pushing towards the low of October 20th, at around 0.6555.
Looking at our short-term oscillators, we see that the RSI turned down and looks ready to fall below 30 soon, while the MACD runs below both its zero and trigger lines. Both indicators detect strong downside speed and support the notion for further declines in this exchange rate.
In order to abandon the bearish case, we would like to see a rebound back above the 0.6735 zone. This could signal the return within the pre-discussed range, and thereby, turn the outlook back to neutral. Initially we could see a test at 0.6755, marked by the inside swing low of January 18th, the break of which could allow advances towards the high of January 20th, at 0.6805. If the bulls are not willing to stop there, then we could see them climbing towards the 0.6837 barrier, marked by the high of January 5th, or towards the upper end of the sideways range, at around 0.6855.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68.02% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2022 JFD Group Ltd.