NZDUSD Down 0 Pips On Hourly Chart, 5 Day Up Streak Ended; in an Uptrend Over Past 30 Days

Hourly Update

(Last Updated September 22, 2020 0:18 GMT)

Currently, NZDUSD’s rate is down 0 pips (0%) from the hour prior. NZDUSD has seen its price go down 4 out of the past 5 hours, thus creating some compelling opportunities for bears. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 20 hour timeframe. Price action traders may also wish to note that we see a pin bar candlestick pattern on NZDUSD. Given that we see downtrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

NZDUSD End of Day Recap

Updated 00:30 GMT (04:30 EST)

After 5 up days, NZDUSD snaps its streak, falling 5 pips (-0.08%) over the past day to close at an exchange rate of 0.67489. Relative to other instruments in the Forex asset class, NZDUSD ranked 20th the day prior in terms of percentage price change. Let’s take a look at price chart of NZDUSD.

NZDUSD

NZDUSD Technical Analysis

The first thing we should note is that NZDUSD is now close to its 20 and 50 day averages, located at 0.6685 and 0.6634 respectively, and thus may be at a key juncture along those timeframes. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. Also of note is that on a 14 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 10 days NZDUSD’s price has gone up 6 them. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

Of note is that traders in aggregate have opinions on NZDUSD, with 8 buy signals on our radar and 20 sell signals. This imputes a buy/sell ratio of 0.4, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a relative strength index technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Mid-Term Forecast: Midterm forecast: While the price is below the resistance 0.6790, beginning of downtrend is expected….If the resistance at 0.6790 is broken, the short-term forecast -beginning of downtrend- will be invalid….Price is above WEMA21, if price drops more, this line can act as dynamic support against more losses.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram