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NZD/USD Bears Remain in Control

NZD/USD Bears Remain in Control, FP Markets

Since early October, sellers have largely taken control of the NZD/USD (New Zealand versus the US dollar) and sent price to lows not seen since late 2022, with limited pullbacks seen. Overall, the currency pair is down nearly 10% from October highs.

Ichimoku Resistance Supporting Sell-On-Rally Setups

What is technically important to recognise is that the current downtrend remains supported by the area formed between the Ichimoku’s Conversion Line (blue at US$0.5830) and Base Line (red at US$0.5892). Consequently, as long as the pair continues to explore lower levels, any pullback will likely prompt traders to closely monitor price action for signs of bearish intent from within the aforementioned area.

Adding to the bearish outlook for the NZD/USD, in addition to the 200-day simple moving average (US$0.6050) rotating lower, and price crossing south of the line in early October, it is clear that the Ichimoku’s Leading Span A (light green at US$0.5861) crossed below the Leading Span B (light orange at US$0.6012). This provides a bearish signal and helps establish another resistance area that investors will watch closely should a deeper pullback come to fruition: the Ichimoku Cloud.

Price Direction?

With the downtrend clear, should a pullback to resistance at US$0.5816 materialise – which, at that point, will likely line up with the resistance area between the Ichimoku’s Conversion/Base Lines – this could be an area that sellers are drawn to.

NZD/USD Bears Remain in Control, FP MarketsDISCLAIMER

The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.

 

 

 

 

 

 

  • NZD/USD Bears Remain in Control, FP Markets
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