Kiwi dollar weakness confirmed by pullback: Technical Analysis
MarketsFN Team
USD/NZD last week broke below the bullish trendline generated last year on October. The pullback then tested the trendline and bearish activity continued this week.
The 50% Fibonacci retracement of the above mentioned bullish trend was almost tested, as NZD/USD is quoting at 0.6046 (- 0.32%) , while the 50% level is at 0.6026.
The true relevant area to assess the direction for the pair is the 61.8% level, at 0.5905. Beneath this area likely to see more severe bearish activity. In case there will be a rebound, a neutral approach would be kept as long that NZD/USD would continue to trade below the most relevant moving averages.
The rate is not oversold yet, with the RSI(14) at 36.79 and tracking volatility (20) is increasing towards its 2023 top.
