The NZDUSD price has taken a bearish turn and the price is at a key support, but will the price continue lower?
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The NZDUSD price has driven lower recently as the USD strengthened in recent days. The price of the NZDUSD is currently testing a major support level which could lead to the market breaking lower further or rejecting and moving higher. Investors are waiting for the CPI data this Friday before making a decision on the USD however, the currency has been strengthening in the short term. The strength meter shows the USD losing strength and the NZD gaining strength but that is not being reflected this week. This could be down to the lack of volatility in the stock markets, the S&P500 is ranging which could lead to a more risk off market.
Looking at the weekly profiles we can see that the price broke below the weekly value area low which suggests that the market is more likely to move lower. Not only this but the price has been breaking through daily value area lows showing sellers are in control of this market. If the price was to break out of the value area low tomorrow we could see a retest of the major support level. If the price was to then break through this level we could see a continuation of the downward trend to the untested point of control.
Do you trade EURUSD? See our latest analysis on the forex pair here.
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