November 24, 2022
  • November 24, 2022

Falling wedge, keeps middle finger trapped around 0.6150s

By on July 18, 2022 0
  • NZD/USD edged lower on Tuesday, down a low of 0.02%, as the Asian session begins.
  • Asian stock futures tumble, poised for a lower open on a gloomy market mood.
  • NZD/USD Price Analysis: Bearish to neutral, unless the buyers recover 0.6200 the majors will be under selling pressure.

NZD/USD is almost flat at the start of the Asia-Pacific session, holds on above the 0.6150 mark after hitting a daily high above 0.6200, but fell due to the shift in market sentiment, which dented appetite for risk-sensitive currencies like the kiwi and supported the greenback. At the time of writing, NZD/USD is trading at 0.6151.

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NZD/USD Price Analysis: Technical Outlook

NZD/USD is still trending down to neutral, printing a successive series of lower lows and lower highs, further reinforcing what was previously mentioned. Additionally, the Relative Strength Index (RSI) broke out of oversold conditions in mid-June and peaked around 45; since then, the RSI has trended lower, indicating further selling pressure to come. Nonetheless, NZD/USD buyers need to step in and reach a daily close above the June 14th low at 0.6196 to shift the bias to neutral. Otherwise, NZD/USD will remain vulnerable.

NZD/USD daily chart

NZD/USD price action has formed a falling wedge, usually a sign of low selling pressure. This means that recent lows in the cycle have been recorded with less momentum, signaling that buyers may overtake sellers. Nonetheless, a flat RSI suggests that NZD/USD sellers are taking profits, waiting for a fresh catalyst to set a new year-to-date low.

Therefore, the first NZD/USD support would be the 0.6150 figure. A break below will expose the 0.6100 figure. Once broken, the next support would be the year-to-date low at 0.6060, followed by a triple zero test at 0.6000.

NZD/USD key technical levels