Technical Analysis of NZDUSD
The NZDUSD currency pair has concluded the week trading between significant moving averages, with traders now looking for the next directional cue. The analysis highlights key technical levels that have influenced price movements throughout the week.
Weekly Price Action
The week began with the NZDUSD under pressure, primarily due to resistance encountered near the 200-hour moving average (MA), which was positioned at 0.6061. The highest point reached during the week was 0.6058, where sellers stepped in, leading to a downward movement.
This decline persisted into Tuesday and Wednesday, with the pair breaking below the 50% retracement level of the May low to June high rally, located at 0.5982. Although the price dipped below this critical level on three occasions, including a low of 0.5975 on Wednesday, it failed to gain sustained momentum beneath this midpoint.
Midweek Rebound
A rebound was observed midweek, with the price climbing to a high of 0.6042 during the early hours of Friday's Asian session, just shy of the lower 200-hour MA at 0.6044. The repeated resistance at the 200-hour MA throughout the week has heightened its technical significance as traders head into the next week.
Current Market Dynamics
As of the latest trading session, the NZDUSD found initial support near the 100-hour MA at 0.6006. However, the price has been fluctuating around this level, indicating a pause in market activity as traders digest recent price movements.
Key Levels to Watch
Resistance: 200-hour MA (0.6036 - 0.6044)
Support: 100-hour MA (0.6006)
50% Retracement Level: 0.5982
Weekly Low: 0.5975
Outlook for Next Week
Heading into next week, the 100-hour MA will act as a crucial barometer for market bias. A bounce from this level could redirect focus towards the 200-hour MA as a key resistance point. Conversely, if the price moves below the 100-hour MA with momentum, it may open the door for a decline towards the 50% retracement level at 0.5982 and the weekly low at 0.5975.
While sellers have maintained control this week, particularly with the price remaining below the 200-hour MA, buyers have shown resilience at the 50% retracement level. The current positioning between these moving averages sets the stage for a potential breakout that could determine the next directional move for the NZDUSD pair.