Latest Contributor Reports

Technical Analysis

NZDUSD Sees Increased Downside Pressure

Typography

NZDUSD has shifted its near-term bias to bearish after dropping sharply to break key support at 0.7055. The odds are high for a move towards the next major low in the 0.6800 area.

On the 4-hour chart, RSI has fallen into bearish territory below 50, indicating momentum is tilted to the downside. Price action is currently below the 20 and 50-period moving averages, which also highlights increased downside pressure in the market.

The market has been in a downtrend since falling from the July peak of 0.7557. NZDUSD needs to rise back above key resistance at 0.7200. From here, the focus would shift back to the upside to target the next resistance level at 0.7343 and ahead of the 0.7434 high.

NZDUSD is at risk of putting in another lower top at 0.7210 if price action continues to fall below 0.7055.

XM.com
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.
More from the author