The quotes of the New Zealand Dollar currency pair against the US Dollar NZD/USD continue to move within the uptrend and downtrend channel. Moving averages indicate the presence of a short-term bearish trend for the pair. Prices are testing the area between the signal lines, which indicates pressure from the sellers of the currency pair and the potential continuation of the fall in the value of the instrument from the current levels. At the time of publication of the Forex forecast, the exchange rate of the New Zealand Dollar to the US Dollar is 0.7197. At the moment, we should expect an attempt to develop a correction and test the resistance level near the 0.7225 area. Further, within the framework of the Forex forecast and analysis for tomorrow, a rebound downwards and an attempt to continue the fall of the currency pair to the area below the level of 0.7005 is expected.
An additional signal in favor of the decline of the NZD/USD currency pair on Forex will be the test of the resistance line on the relative strength indicator. The second signal in favor of a fall will be a rebound from the upper limit of the descending channel. The cancellation of the option of reducing the quotes of the New Zealand Dollar on Forex will be a strong growth and a breakdown of the level of 0.7295. This will indicate a breakdown of the support area and the lower border of the channel. In this case, the pair will continue to fall to the area below the level of 0.7485. Expect confirmation of the fall of the NZD/USD currency pair with the breakdown of the support area and the closing of quotes below the level of 0.7095.
Forex forecast and analysis of NZD/USD for May 25, 2021
Important news from New Zealand that may affect the pair's exchange rate is not expected, so the pair will continue to move within the framework of technical analysis.
Thus, the Forex forecast and analysis of NZD/USD for May 25, 2021 suggests an attempt to test the resistance area near the level of 0.7225. Where should we expect a continuation of the fall of quotations in the area below the level of 0.7005. An additional signal in favor of a decline will be a test of the trend line on the relative strength indicator. The cancellation of the fall option of the NZD/USD pair will be a strong price increase and a breakdown of the 0.7295 level. In this case, we should expect the pair to continue rising with a potential target above the 0.7485 level.