- NZD/USD has fallen 1.84% lower as Antipodean currencies struggle.
- The price looks set to hit the 0.6371 support zone over the next couple of sessions
NZD/USD daily chart
NZD has been looking overstretched for a while now. The currency had strengthened even as the RBNZ said they would consider negative interest rates. One good thing the economy in NZ had going for it is the control of the COVID-19 pandemic. The nation seemed to be one of the key success when it came to virus control. Now the risk appetite from investors seems to have fallen, the NZD/USD pair has moved with it.
Looking closer at the chart, the price is swiftly heading to the support zones under the current price. 0.6371 has been used a couple times in the past as both support and resistance and it could be an area where this move lower could stall. Below that, the 0.6136 is a very strong area but of course this is further away.
The technical indicators have also dropped of with the Relative Strength Index dropping from elevated levels. The price might also meet the 55 and 200 period moving averages and they might also provide some restbite for the bulls. The MACD is showing signs of turning but has not as if yet. This could be one to keep an eye on.
It must be noted that although there has been a big fall today the market is firmly still in an uptrend. There could still be points in which the bulls come back in at lower levels.
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