The New Zealand Dollar (NZD) is at a crucial juncture, with analysts predicting that it could test the 0.6115 level if it remains below 0.6185. While a significant break below 0.6115 is not anticipated at the moment, there is a possibility of further downside towards 0.6085 in the longer term. Recent trading activity saw the NZD fluctuating between 0.6129 and 0.6164, ultimately closing at 0.6150. Despite the relatively muted movement, the overall trend appears slightly weak, hinting at a potential test of lower levels before any recovery.
A closer look at the 3-hour timeframe chart of NZDCAD reveals a bearish trend forming as price establishes new lows, surpassing previous levels. The 50-period SMA has crossed below the 100-period SMA, adding further confirmation to the bearish outlook. The highlighted supply zone, aligning with the 76% Fibonacci level and trendline resistance, is seen as a key area of interest for potential entry points. Analysts are anticipating a bearish direction with a target at 0.82350 and an invalidation level at 0.83890.
The NZDUSD pair has recently breached the pivot zone on the daily timeframe and crossed below the 100-period SMA on the 3-hour chart. This shift in momentum suggests a downward trajectory towards the highlighted demand zone near the 0.60100 region, with a possible target at the 0.60500 price level if not lower. Analysts are leaning towards a bearish outlook, with a target set at 0.60125 and an invalidation point at 0.61877.
The New Zealand Dollar is facing critical junctures in its price action, with potential downside movements looming. Analyst expectations point towards a bearish bias for both the NZDCAD and NZDUSD pairs, highlighting key levels to watch for potential entry and exit points. Traders and investors are advised to monitor these levels closely and adjust their strategies accordingly to navigate the volatile market conditions.