Market Consolidation Continues as NZDUSD Keeps Trading Sideways

Price Analysis – NZDUSD Keeps Trading in Consolidation

NZDUSD keeps trading in a ranging market courtesy of the 0.70550 and 0.69400 key levels. Bulls and Bears have been locked in a tussle for market preeminence since the 0.71300 support failed to keep price us. This ensured that the kiwi fell below 0.70550 and further to 0.69400. The tussle for power has been intense, with the daily candles trading at levels past the upper and lower borders at random intervals.

NZDUSD Significant Zones

Resistance Zones: 0.69400, 0.70550
Support Zones: 0.68800, 0.67800
The middle line along the consolidation zone has also alternatively acted as support and resistance, pushing price up or knocking it down at intervals. Bears have the upper hand in the tussle as the market has pierced the lower border more times than the upper border. But in the bulls’ favor, there is extra support for the market at the 0.67800 key level. It has helped to turn the price back up when it seemed the price had broken lower.

Kiwi has fallen again from the upper border of the consolidation zone with a strong bearish impulse that has broken past the lower border and is currently approaching the 0.69400 price level. On the Stochastic Oscillator, the blue signal line has plunged directly into the oversold region. This shows a sharp increase in bearish momentum. Also, the Parabolic SAR (Stop and Reverse) signifies a change in bearish direction with a single dot above the daily candles.

Market Prospects

The Parabolic SAR indicator already has 4 dots above the 4-hour chart. Four consecutively bearish candles show that the bears are on a prowl which has plunged the market below 0.69400 and towards 0.68800. The 4-hour Stochastic Oscillator chart has both signal lines now plunged into the oversold region. Kiwi keeps falling with momentum and has a good chance to break past the 0.68800 support at this time.

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