Market Analysis – Sellers Show More Resilience
NZDUSD sellers plan for more strikes. The pair have been the subject of intense scrutiny in recent times. The bears, or the sellers, have been making their presence felt by breaking through several strongholds. One of the most significant levels that was breached was the 0.59380 mark. This breakthrough marked a turning point for the bears, as they took control once again after a failed resurgence from the start of the month at the 0.60750 level.
NZDUSD Market Levels
Resisting Levels: 0.63790, 0.62780
Support Levels: 0.59380, 0.57830
Before the recent bearish momentum, it seemed that the sell traders had a stronger influence on the price of the New Zealand dollar (kiwi). The market even retested the 0.60750 level, giving the sell traders more leverage and opening up additional sell opportunities. This buildup of sell pressure has resulted in a relentless downward push in the market.
The momentum indicator provides valuable insights into the strength of the market trend. In the case of the NZDUSD pair, the signal line fell immediately after buyers failed to overcome the 0.60750 price level. This decline in the signal line further emboldened the sell traders, who have been capitalizing on this opportunity to drive the market lower.
Market Expectation
Currently, the NZDUSD pair is approaching the 0.58590 level, which can be considered a dangerous area for sell traders. It is at this point that a potential reversal may occur, allowing the buyers to regain control. The Relative Strength Index (RSI), an important technical indicator, still remains in favor of the sell side.
However, the buyers are also close to taking over, indicating a possible shift in market dynamics in the near future. The next trading action will largely depend on the price action around this key level, as both the bulls and the bears continue to struggle for dominance.
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