NZD/USD Makes Big Move Relative to Two Week Trend, Up 2 Pips; Social Sentiment Biased Towards Selling

NZD/USD Price Recap

The choppiness in the recent daily price action of NZD/USD continues; to start today, it comes in at a price of 0.62686 US dollars, up 2 pips (0.03%) since yesterday. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 26.75% from the day before — and down 3.8% from the same day the week before. Relative to other instruments in the Forex asset class, NZD/USD ranked 14th yesterday in terms of percentage price change. Below is a price chart of NZD/USD.

NZD/USD Technical Analysis

Notably, NZD/USD is now close to its 20 day moving averages, which may act as price barrier for the asset. Volatility for NZD/USD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving down. For additional context, note that price has gone up 7 out of the past 10 days. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

The View From Around the Web

Of note is that traders in aggregate have opinions on NZDUSD, with 4 buy signals on our radar and 16 sell signals. This imputes a buy/sell ratio of 0.25, which is bearish. As for the rationale, technical traders seem to be citing the appearance of relative strength index and trendline technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

NZDUSD rebounded from key level and HVN around 0.63500price trading in downtrend lineprice below SMA100 MACD shows bearish momentumRSI below 50ELLIOT WAVES indicate start of impulse bearish wave 5 to support level around 0.60500