Created
: 2024.09.05
2024.09.05 19:53
NZD/USD reversed course after breaking out of the top of its consolidation range. It is threatening to fall back down towards the range lows, however, it is too early to say for sure.
Despite the current weakness, the trend remains bullish on the daily chart, and given "the trend is your friend" the odds still favor a recovery and eventual extension to higher highs. Price also remains above the trendline for the August rally, a further sign the uptrend is intact.
The Kiwi is will probably achieve its next upside target at 0.6409, the December 2023 high. A break above 0.6302 would provide added bullish confirmation. Another target is situated at 0.6448, the 0.618 ratio of the height of the range extrapolated higher.
If NZD/USD closes below the trendline - currently at around 0.6160 - it could mark a reversal lower. A break below 0.6133 (September 3 low) would form a lower low and provide added confirmation. The next target to the downside would be at the cluster of Moving Averages situated at 0.6070, followed by the range lows in the 0.5850s.
The Moving Average Convergence Divergence (MACD) has not yet closed below its red signal line. If it does it will provide a sell signal although such a cross would not be enough alone to signal a change in trend.
Created
: 2024.09.05
Last updated
: 2024.09.05
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy