- The NZD/USD begins the Asian session in the right foot, up some 0.46%.
- A candlestick morning-star formation in the daily chart opens the door for 0.6900.
The NZD/USD bounced off year-to-date lows, is rising as the Asian session begins, trading at 0.6789 during the day at the time of writing. On Tuesday in the overnight session, the NZD/USD pair dipped as low as 0.6736, then rallied on the back of positive omicron COVID-19 news, up to high 0.6770s. Then, through the rest of the day, the pair advanced steadily, leaving behind the 50 and the 100-hour simple moving average (SMA), below the spot price, but the upside move stalled around the R3 daily pivot point around 0.6784.
NZD/USD Price Forecast: Technical outlook
Daily chart
The NZD/USD chart depicts the pair has a downward bias after posting losses on 11 of the last 13 days. Furthermore, the 50-day moving average (DMA) crossed below the 100-DMA, leaving the DMA’s correctly positioned in bearish order with the 200 on top and the 50-DMA on the bottom. Nevertheless, as shown by the candlesticks, the price action of the last three days is forming a morning star, a chart pattern with bullish implications that would need another bullish candle to confirm its validity.
Hence, the bias in the near term is tilted to the upside. The first resistance would be 0.6800. The breach of the latter exposes crucial resistance levels, with the September 28 cycle low-turned-resistance at 0.6859, followed by the figure at 0.6900.
-637745129811412987.png)
1-hour chart
The NZD/USD broke to the upside of the 100-hour simple moving average (SMA) in the last four hours but stalled around 0.6785. As previously mentioned, the 50 and the 100-hour SMA’s lie below the spot price, so the upward bias is in place, but a break above the 200-hour SMA at 0.6802, could pave the way for further gains.
The first resistance on the way up would be the confluence of the 200-hour SMA and the R1 Wednesday’s daily pivot at 0.6806. A break above that level would expose the R2 pivot at 0.6827, followed by the R3 daily pivot at 0.6862.
-637745131577396817.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD remains heavy below 1.0550 as focus shifts to US ISM PMI
EUR/USD remians under heavy selling pressure below 1.0550 in early European session on Monday. The pair is dragged down by dovish ECB-speak and a firmer US Dollar following Trump tariffs threat on BRICS-fuelled flight to safety. Investors now look forward to US ISM Manufacturing PMI data due later in the day.
GBP/USD holds losses near 1.2700 on stronger US Dollar
GBP/USD consolidates losses near 1.2700 early Monday, reversing a major part of Friday's positive move. The slide is sponsored by a goodish pickup in the haven demand for the US Dollar, as traders remain wary over the latest Trump tariffs threat on BRICS nations. US ISM PMI is next in focus.
Gold price remains heavily offered amid renewed USD buying interest
Gold price meets with heavy supply on Monday and snaps a four-day winning streak. Rebounding US bond yields help revive the USD demand and weigh on the commodity. Trade war concerns and geopolitical risks do little to lend support to the XAU/USD.
Bitcoin consolidates while ETH, XRP rallies
Bitcoin consolidated on Monday following its recovery from last week's pullback. At the same time, Ethereum and Ripple extended their rallies, driven by investors reallocating capital from BTC to altcoins, signaling the potential for continued upward momentum.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.