NZDUSD Suffers Precipitous Drop to Continue Downtrend

NZDUSD Analysis – Price Suffers Precipitous Drop to Continue Downtrend

NZDUSD suffers a precipitous price drop to continue its bearish agenda. The buyers were hopeful of putting an end to a seeming downtrend in the market. The price rallied from a strong support level of 0.65330 and trudged upwards till it rose about 7.82%. A breakout beyond the significant level of 0.70360 would have well and truly set the price free from bearish claws, but it was not to be as NZDUSD suffers a precipitous drop from there.

NZDUSD Significant Levels

Resistance Levels: 0.70360, 0.67140
Support Levels: 0.64010, 0.65330
Despite the occasional interruption of buyers into the market to redirect it, the market has maintained a general bearish overview. This wasn’t the situation from the beginning of the year when bullish interruption was at the barest minimum. The market is only seen to range and drop majorly till the bulls become stronger around August. On the 20th of that month, they pushed the price to 0.71500.

The market suffers rejection and drops but revives around 0.69460. The price then goes on to violate the 0.71500 resistance but doesn’t go beyond that and plunges to a lower price level. A precipitous fall continues till the market rallies again at 0.65330 to rise to 0.70360. From here, the price plummets to continue its general downtrend. The MA Cross (Moving Average) crosses downward in the market’s direction.

Market Expectations

On the 4-hour chart, the price is seen to fluctuate vigorously at 0.69460 before rising to hit 0.70360. The price suffers rejection and plunges downward continually. NZDUSD initially bounces off 0.67140, then it weakens immediately and plummets below the level. The MACD (Moving Average Convergence Divergence) lines have fallen deeply below zero level and are now in a sideways movement despite the continuous price drop. NZDUSD is expected to rally upward towards 0.67140.

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