NZD/USD trades bearish below the regression channel’s median line and the critical resistance of $0.58. Meanwhile, Stochastic hints at an oversold market, which could result in prices consolidating near $0.578 followed by $0.580.
These demand levels offer a decent ask price to join the downtrend strategically. Therefore, retail traders and investors should monitor this level meticulously.
NZDUSD Technical Analysis – 13-December-2024
The currency pair‘s main trend is bearish because the prices are below the 75-period simple moving average. The bearish regression channel also backs the downtrend. However, the Stochastic Oscillator is below 30, depicting 13 in the description, meaning the New Zealand dollar (Kiwi) is overpriced, at least for a short while.
Due to the Stochastic signal, the pair is likely to consolidate near the upper resistance levels. In this scenario, NZD/USD could rise toward $0.578, followed by $0.580.
Wait for NZDUSD to Test Demand Levels Below $0.58
Retail traders and investors should be aware that joining a downtrend when the trading security is saturated with sellers is too risky. Therefore, it is highly recommended that they wait patiently for the prices to consolidate near low-risk demand zones, as mentioned above.
That said, if the immediate resistance holds, the NZD/USD bearish market will likely extend to the next support level, $0.73, followed by $0.568.
The Bullish Scenario
The bearish outlook should be invalidated if NZD/USD prices exceed $0.581. If this scenario unfolds, the pair could erase its losses to the 78.6% Fibonacci resistance level at $0.586.