Baxia Markets
August 25, 2021

NZDUSD Faces Another Downtrend

technical analysis top header -01


The crazy drop had lasted a week since Aug 13th. NZDUSD was not the only major pair to go down, but it could be one of the steepest drops. During this process, the price was down by 3.41%. The price started to recover on Aug 20th. Is this recovery a retracement of the downward trend or a complete turning?




It could be a retracement. Because now, we can see the price has lost momentum. First, the price did not pass the 0.695 level, which means that the price met resistance. The resistance started to work on Aug 24th, which was also the time that the price touched the upper Bollinger Band, so the resistance made more sense here. Besides, this 0.695 level was also the 61.8% Fibonacci level, which was a high resistance pressure level. Another thing is, the Stochastics and RSI both came down from an overbought area, which means the price could turn down soon.


We love to hear new ideas from traders and want to know what you think! 


If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.


Open Live Account  


Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 


Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. 

Subscribe by Email