NZD/USD just got rejected from a downtrend resistance!
Will this lead to the pair making new lows in the next few days?
I’m looking at the daily chart for a bird’s eye view!
NZD/USD: Daily
NZD/USD Daily Forex Chart by TV
As you can see, NZD/USD recently ended a weeks-long upswing after getting rejected at the .6250 area.
And why not? Aside from being near the daily chart’s 100 SMA and the 61.8% Fib level, .6250 also lines up with a descending channel resistance that’s been around since late 2022.
Does this mean that NZD/USD is headed for new yearly lows?Risk-off sentiment appearing will certainly not help the bulls.
Momentum traders can take advantage of NZD/USD slipping below the Pivot Point (.6130) line and the 200 SMA to target close areas of interest like .6100 or .6050.
You can even plan for a trip below .6000 if there’s enough bearish momentum!
Not convinced that NZD/USD will continue its downtrend?
You can wait for a couple more candlesticks to see if NZD/USD stays below the 200 SMA. If it retests the .6200 psychological level, then the pair could make a play for an upside breakout.
Whichever bias you choose to trade, make sure you’re using your best risk management practices so you don’t lose your shirt on a single trade!