Signal price

Plunges below 61.8% Fibo retracement at 0.6720

  • Failure to settle above 0.6800 dragged the asset down quickly.
  • The 20 and 50 period EMAs delivered a bear cross, which signals more weakness ahead.
  • The RSI (14) slipped below 60.00, showing no signs of divergence and an overbought situation.

NZD/USD has been falling like a house of cards since Thursday after failing to hold above round resistance at 0.6800. The asset eased more than 1.4% from its weekly high of 0.6814 and is likely to extend its losses as it slipped below the four-day low at 0.6715.

On the daily scale, the NZD/USD pair failed to hold above the 61.8% Fibonacci retracement (placed from the January low at 0.6529 to the April high at 0. 7035) to 0.6724. Usually, a dip below the 61.8% Fibo retracement indicates an upcoming decline.

A fresh bearish crossover of the 20 and 50 period exponential moving averages (EMAs) at 0.6825 signals a quick bearish move ahead. Additionally, the Relative Strength Index (RSI) (14) has fallen below 40.00, indicating further weakness. The RSI momentum oscillator (14) shows no signs of divergence and an oversold situation.

A test of the supply zone in a 0.6719-0.6727 will be an optimal sell for market participants. This will take the asset down to the February 22 low at 0.6682, followed by the February 10 low at 0.6653.

On the contrary, the kiwi bulls could regain strength if the asset breaks above the weekly high at 0.6814. Violation of the same will drive the asset towards the 38.2% Fibo retracement and the April 12 high at 0.6843 and 0.6890 respectively.

NZD/USD daily chart