The New Zealand Dollar Struggles Against Major Peers

• 16 Jan 2018

NZD/USD

The NZD/USD has reached overbought conditions and the uptrend appears to be stalling. RSI has a downward trajectory after pushing beyond the 70 resistance zone. Volume appears to be waning which may suggest a lack of appetite from buyers to push prices higher. A significant resistance line rests at the 0.735 price level. The pair may struggle to reach this price line however, given the trajectory of momentum indicators.

NZD/CHF

After a break of the 0.701 price level to the upside, the NZD/CHF pair reversed the move to test the 0.701 price line once again. Momentum indicators have pulled back from an overbought position. Despite the bearish move, MACD remains in bullish territory and volume has stalled at elevated levels. It is possible that the pair trade in range between the 0.695- 0.712 price levels in the near term.

AUD/NZD

The AUD/NZD pair is testing the 20- period EMA having recovered from oversold conditions. Volume has spiked into the move and RSI has a sharp upward trajectory indicating plenty of conviction from buyers. Positive news from the Australian Automotive sector earlier in the day will likely keep the Australian Dollar buoyant in today’s trading.

GBP/NZD

The GBP/NZD pair is testing the 20-period EMA having recently broken the 1.881 price level. Despite the break, it seems the pair is likely to sustain the longer term downtrend with the 20-period EMA acting as a resistance level. MACD remains in negative territory to support the long-term bearish sentiment despite RSI suggesting a momentum change.