- NZD/USD has fallen sharply and trades 0.81% lower on Thursday.
- The price met some resistance a the 127.2% Fib extensions.
NZD/USD 4-hour chart
NZD has struggled today as the currency is often correlated with the risk environment. The NZD/USD had been living on borrowed time after the last dovish RNBZ changes not really having a material effect on the NZD at the time. It seems now there has been an additional excuse for a correction.
Looking at the chart, the price found some resistance at the 127.2% Fibonacci extension. This is also very close to the blue resistance zone from a previous wave back in December 2019. On the downside, the move stopped at a support level which had been tested four times recently. This was at the psychological 0.67 figure but if it does break the red internal trendline is lying in wait.
The indicators are pretty mixed at the moment. The MACD histogram is in the red but the signal lines are still above the mid-level. The Relative Strength Index is close to the oversold zone but a move back above 50 could indicate the uptrend is back on.
Overall, this is still an uptrend but watch out for a lower high lower low pattern. If the risk environment doesn’t improve there could be some more pain to come but tomorrow the market gets the latest NFP figure and this is sure to inspire some volatility.
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