NZD/USD Price Analysis: Plunges to new YTD low as the downtrend continues

NZD/USD Price Analysis: Plunges to new YTD low as the downtrend continues

Time Stamp: October 19, 2023 7:10 PM
Source Node: 2945012

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  • NZD/USD is on a downtrend, with a series of lower highs and lower lows and hit a YTD low of 0.5815.
  • For a bearish continuation, NZD/USD needs to break below 0.5815, with potential targets at 0.5800 and 0.5740.
  • In case of a reversal, the first resistance lies at 0.5900, followed by 0.5931 (50-DMA) and 0.6000.

NZD/USD dropped to a new year-to-date (YTD) low of 0.5815, though towards the New York close, it recovered some ground, finishing Thursday’s session with losses of 0.11%. As the Asian session begins, the pair extends its losses to four straight days and exchanges hands at 0.5843, down 0.08%.

The currency pair is downward biased after reaching a new cycle low and printing a series of lower highs and lower lows after hitting a multi-month high in July at around 0.6384. For a bearish continuation, the NZD/USD would need to break below 0.5815 so sellers could challenge the 0.5800 figure, followed by last year’s November 22 swing low of 0.5740.

In the event of reversing its course and aiming higher, the NZD/USD first resistance is the 0.5900 mark. A decisive break, buyers could set their sight at the 50-DMA at 0.5931 before climbing toward the 0.600 figure. The next resistance would be the 200-DMA at 0.6149.

NZD/USD Price Action – Daily chart

NZD/USD Technical Levels

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