NZDUSD Technical Analysis: The New Zealand Dollar (NZD)/US Dollar (NZD/USD) pair is witnessing strong bearish trading today, moving within a clear descending price channel. The pair recorded a daily high of 0.57919 and then declined to a low of 0.56095. It is currently stabilizing around 0.56203, reflecting strong selling pressure in the market.
NZDUSD Technical Analysis Technical Analysis:
Moving Average Analysis:
Technical analysis shows that the price is currently trading below all major moving averages, indicating a clear dominance of the downtrend. The moving averages are currently forming a dynamic ceiling for any upward attempts.
MACD Analysis:
The MACD indicator reinforces the bearish picture, with the main line appearing below the signal line in negative territory, with the negative bars continuing to widen. This pattern indicates continued strong downward momentum with no signs of a reversal on the horizon.
Outlook and Trading Strategy:
Given current technical indicators, a sell-on-retracement strategy is preferable, with initial targets set at 0.55710 and then 0.55571. Stop-loss orders should be placed above 0.56563 to effectively manage risk. However, any upward breakout of 0.56781 should be monitored, as this could signal the beginning of a temporary correction.
Trading strategies based on Buy/Sell levels
| NZDUSD | In case of buying | in case of selling |
| Entry point | 0.56563 | 0.55994 |
| Target Point 1 (TP1) | First resistance: 0.56781 | First support: 0.55710 |
| Target Point 2 (TP2) | Second resistance: 0.56881 | Second support: 0.55571 |
| Stop Loss (SL) | 0.55994 | 0.56563 |
The pair continues to exhibit a strong downward trend, supported by fundamental technical indicators. Traders are advised to focus on selling opportunities while being cautious of any fundamental developments that could disrupt the current trend. Risk management remains crucial amid the current market volatility.
