Technical Analysis – NZDUSD selling interest in progress; hits one-week low

Melina Deltas, XM Investment Research Desk

NZDUSD is continuing this week’s sell off with strong momentum, reaching a one-week low around 0.6730 and at the same time confirming the start of a bearish movement. The short-term bias looks negative as the MACD keeps losing ground below its red trigger line, while the RSI seems to be making its way down beneath its 50 neutral mark, moving towards the oversold territory.

The 0.6705 could be a critical level for steeper bearish actions if the pair continues the negative tendency. Also, the 0.6670 could attract some attention, taken from the low on January 4, while a significant leg below this hurdle could open the door for the next support of 0.6610.

However, if the pair reverses back to the upside and rise above 0.6752, investors could make a pause at the 40- and then at the 20-simple moving averages (SMAs) around the 0.6800 handle. If the price continues to extend gains, resistance could come next somewhere near the latest high of 0.6847.

Overall, kiwi/dollar has reversed back to the downside in the 4-hour chart, slipping below the SMAs, which are ready to post a bearish cross in the near future.