Forex Market

NZD/USD Pair Shows Weakness, Risks Dropping to Yearly Lows

Published by
Nonhlanhla P Dube
  • The NZD/USD pair showed signs of weakness on Wednesday, reversing the gains made during the previous day and dropping to an intraday low of 0.6190.
  • The pair failed to break through the 50-DMA hurdle, and the early week’s bounce off the 200-DMA also faded. The RSI (14) line is steady, suggesting that the pair may continue to move sideways between the 50-DMA and 200-DMA.
  • The recent reversal from the 50-DMA suggests that the NZD/USD quote is likely to drop towards the 200-DMA support level of 0.6160. The 50% and 61.8% Fibonacci retracement levels of the Kiwi pair’s run-up from October 2022 to February 2023, located around 0.6025 and 0.5900, respectively, could attract the bears. Recovery moves should stay beyond the 50-DMA hurdle of 0.6230 and mark a successful break of the previous support line to confirm bullish momentum.

The NZD/USD pair showed signs of weakness on Wednesday, with the pair reversing the gains made during the previous day and dropping to an intraday low of 0.6190. The pair failed to break through the 50-DMA hurdle, and the early week’s bounce off the 200-DMA also faded. The RSI (14) line is steady, suggesting that the pair may continue to move sideways between the 50-DMA and 200-DMA, which are located at 0.6230 and 0.6160, respectively. The recent reversal from the 50-DMA suggests that the NZD/USD quote is likely to drop towards the 200-DMA support level of 0.6160. If the quote’s weakness persists, it could test the yearly low marked in March at 0.6080.

The 50% and 61.8% Fibonacci retracement levels of the Kiwi pair’s run-up from October 2022 to February 2023, located around 0.6025 and 0.5900, respectively, could attract the bears. To confirm bullish momentum, recovery moves should not only stay beyond the 50-DMA hurdle of 0.6230 but also mark a successful break of the previous support line, extending from early March and close to 0.6315. If this happens, the Kiwi pair buyers could refresh the monthly high at around 0.6385.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube
Tags: NZD/USD

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