NZD/USD Price Analysis: Treads water around 0.5900 with a bearish sentiment

Source Fxstreet
Apr 22, 2024 08:53
  • NZD/USD maintains gains despite the bearish sentiment indicated by the technical analysis.
  • Traders might contemplate short positions if the pair breaks below the support area encompassing 0.5863 and 0.5850.
  • A pullback from the level of 0.5863 could lead the pair toward lower boundary of a symmetrical pattern around 0.5933.

NZD/USD snaps its two-day losing streak, trading around 0.5910 during the European session on Monday. The recent break below the symmetrical channel on April 15 on the daily chart denotes a bearish sentiment.

Furthermore, analysis of the lagging indicator Moving Average Convergence Divergence (MACD) suggests a prevailing downward trend for the NZD/USD pair. This is evident from the MACD line's placement below the centerline and the signal line.

Additionally, the 14-day Relative Strength Index (RSI) remains below the 50 level, offering further confirmation of the bearish sentiment. This could prompt traders of the NZD/USD pair to focus on the region around the significant support levels of 0.5863 and 0.5850. Should these levels be breached, traders may consider short positions, potentially driving the pair to test the psychological barrier at 0.5800, followed by the support level of 0.5772.

Alternatively, if the pair rebounds from the support level of 0.5863, it could target the lower boundary of a symmetrical pattern around 0.5933 and the key level of 0.5950. A breakthrough above these levels might encourage traders to adopt long positions, shifting the sentiment towards bullish, with a potential aim to reach the 50-day Exponential Moving Average (EMA) positioned at 0.6030.

A break above the 50-day EMA will strengthen the bullish sentiment and test the upper boundary of the symmetrical pattern around 0.6043. A breakthrough at this level could prompt the traders to go bullish and approach the resistance barrier at 0.6219.

NZD/USD: Daily Chart

NZD/USD

Overview
Today last price 0.5908
Today Daily Change 0.0023
Today Daily Change % 0.39
Today daily open 0.5885
 
Trends
Daily SMA20 0.5973
Daily SMA50 0.6062
Daily SMA100 0.6123
Daily SMA200 0.6055
 
Levels
Previous Daily High 0.5907
Previous Daily Low 0.5851
Previous Weekly High 0.5954
Previous Weekly Low 0.5851
Previous Monthly High 0.6218
Previous Monthly Low 0.5956
Daily Fibonacci 38.2% 0.5873
Daily Fibonacci 61.8% 0.5886
Daily Pivot Point S1 0.5855
Daily Pivot Point S2 0.5825
Daily Pivot Point S3 0.5799
Daily Pivot Point R1 0.5911
Daily Pivot Point R2 0.5937
Daily Pivot Point R3 0.5967

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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