NZD/USD Forecast and Technical Analysis: Crucial Levels to Watch
Introduction
The New Zealand Dollar (NZD) and the United States Dollar (USD) are two popular currencies that trade frequently against each other. In this article, we will explore the latest NZD/USD forecast and technical analysis, highlighting important levels to watch.
NZD/USD Forecast
According to market analysts, the NZD/USD is expected to continue its downward trend in the near term. The pair has been overbought recently and is likely to retrace towards the support level of 0.5920. However, if the pair breaks below this level, it could extend its decline to 0.5880 or even lower.
Technical Analysis
The technical indicators on the NZD/USD chart are also pointing towards a bearish outlook. The Relative Strength Index (RSI) is below the 50-level, indicating that the pair is overbought. The Moving Average Convergence Divergence (MACD) is also below the zero line, suggesting that the bears are in control.
Key Levels to Watch
Traders should keep an eye on the following key levels in the NZD/USD pair:
- Support: 0.5920
- Resistance: 0.6040
- Pivot Point: 0.5980
Trading Strategy
Based on the technical analysis and market forecast, we recommend a short position on the NZD/USD pair with a target of 0.5920. The stop loss should be placed above the resistance level of 0.6040.
Disclaimer
Please note that this forecast and analysis is solely based on technical indicators and market sentiment. It should not be taken as financial advice. We recommend consulting with a qualified financial advisor before making any trading decisions.
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