FxNews—The New Zealand dollar has been dipping against the U.S. dollar from $0.638 (September 30 High). Subsequently, the currency pair’s value fell below the $0.630 support, backed by the ascending trendline and the 50-period simple moving average.
As of this writing, the NZD/USD currency pair trades at approximately $0.629, stabilizing below the 50-SMA. The 4-hour chart below demonstrates the price, support, resistance levels, and technical indicators utilized in today’s analysis.
NZDUSD Technical Analysis – 2-October-2024
The primary trend is bullish because the currency pair’s value exceeds the 100-period simple moving average. Interestingly, the robust selling pressure caused the Stochastic oscillator to signal an oversold market, but the RSI indicator depicts 40 in its description, meaning the downtrend can resume.
On the other hand, the last bar in the Awesome oscillator turned green while the bars were below the signal line, meaning the bear market weakened.
Overall, the technical indicators suggest the primary trend is bearish, but the NZD/USD price can potentially dip to lower support levels before the bull market resumes.
NZDUSD Forecast – 2-October-2024
The $0.630 is the immediate resistance to the current bearish trend. If the NZD/USD sellers hold below this resistance, the consolidation phase will likely resume at the $0.625 resistance, backed by the 100-period SMA.
Retail traders and investors should closely monitor the $0.625 support for bullish signals if this scenario unfolds. The 100-period simple moving average backs this supply zone. Additionally, the stochastic is oversold, so the NZD/USD price can potentially bounce from $0.625.
Please note that the main trend is bullish and should be invalidated if the NZD/USD price falls below the 100-period simple moving average.
- Also read: AUD/USD Technical Analysis – 2-October-2024
NZDUSD Support and Resistance Levels – 2-October-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: $0.625 / $0.620 / $0.617
- Resistance: $0.630 / $0.638 / $0.640