NZDUSD analysis – Pair remains under heavy selling pressure

The NZDUSD pair extended this week’s rejection slide from the 0.6300 handle and remained under some heavy selling pressure for the third consecutive session on Thursday.

29 August 2019, GKFX – The pair dropped to challenge the 0.6300 handle – the lowest level since September 2015 – and confirmed a bearish breakthrough a three-week-old descending trend-channel.

Against the backdrop of US-China trade pessimism, Thursday’s disappointing release of ANZ Business Confidence reaffirmed calls of a future RBNZ rate cut in November and kept exerting downward pressure on the major.

NZDUSD technical analysis

However, extremely oversold conditions on hourly/daily charts held investors from placing any fresh bearish and seemed to be the only factor that helped limit further losses, allowing the pair to rebound around 15-pips from daily lows.
Meanwhile, a follow-through weakness below the 0.6300 handle will now be seen as a key trigger for bearish traders and set the stage for an extension of the downward trajectory towards testing 2015 swing lows – around the 0.6230-20 region.
On the flip side, any attempted recovery move might now confront some fresh supply near the 0.6330-35 region, above which the pair is likely to aim towards testing the top end of the descending trend-channel – currently near the 0.6365-70 zone.

NZDUSD 4-Hourly chart



This article was provided by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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