NZDUSD Technical Analysis: The NZD/USD pair is trading in a weak downtrend today, as the pair recorded a low of 0.5839, then turned to rise to reach a high so far at 0.5874, and is currently settling at 0.5867. This shift indicates a weakness in the downtrend and a change in momentum towards the upside.
NZDUSD Technical Analysis: Technical Analysis
Moving Averages: Prices are trading below the major moving averages, indicating negative pressure on the pair and support for the continuation of the downtrend, despite the current upward shift. However, trading below these averages still indicates the continuation of the downtrend in the short term.
- MACD Indicator: The MACD indicator is pointing to a negative trend, reflecting the weakness of the downward momentum. Although the current movement indicates a temporary upward shift, the indicator remains in the negative territory, indicating that the general trend may remain bearish unless there is a significant change in momentum.
Economic Influences:
The US dollar has weakened significantly after the release of some economic data that contradicted expectations, most notably the US unemployment rate report, which came out worse than expected. This weakness in the US labor market data led to a decline in the strength of the dollar, which helped improve the movement of the NZD/USD pair and supported it to temporarily shift from a bearish trend to an upward trend.
Trading strategies based on Buy/Sell levels
| NZDUSD | In case of buying | in case of selling |
| Entry point | 0.5873 | 0.5854 |
| Target Point 1 (TP1) | First resistance: 0.5882 | First support: 0.5847 |
| Target Point 2 (TP2) | Second resistance: 0.5900 | Second support: 0.5835 |
| Stop Loss (SL) | 0.5854 | 0.5873 |
Based on the technical analysis, the NZD/USD pair remains in a downtrend supported by negative technical indicators such as moving averages and MACD. Despite the negative economic data impact on the US dollar, the downtrend is still dominant at the moment, making it likely that the pair will continue to decline, unless new factors emerge that push the market to change direction.
