The quotes of the New Zealand Dollar against the US Dollar NZD/USD end the trading week near the area of 0.7251. Moving averages indicate the presence of a bullish trend for the pair. Prices moved up from the area between the signal lines, which indicates pressure from buyers of the currency pair and the potential continuation of growth from the current levels in the market. At the moment, we should expect an attempt at a bullish correction of the currency pair on Forex and a test of the resistance area near the level of 0.7295. Then, the rebound and the continuation of the fall of the currency pair with a potential target below the level of 0.6535.
An additional signal in favor of the fall of the NZD/USD currency pair will be a test of the trend line on the relative strength indicator. The second signal will be a rebound from the upper boundary of the ”Double Top" reversal pattern. The cancellation of the option of falling quotes of the pair in the current trading week on May 31 - June 4, 2021 will be a strong growth and a breakdown of the 0.7605 area. This will indicate the breakdown of the resistance area and the continuation of the rise of the NZD/USD pair with a potential target above the level of 0.8335. Confirmation of the fall of the currency pair on Forex will be the breakdown of the support area and the closing of quotes below the 0.6845 area, which will indicate the completion of the formation of the ”Double Top" reversal model.
NZD/USD Technical Analysis for the week of May 31 - June 4, 2021
Important news from New Zealand, which may have an impact on the New Zealand Dollar, is not expected, so the pair will continue to move within the framework of technical analysis.
Thus, the technical analysis of NZD/USD for the week of May 31 - June 4, 2021 suggests an attempt to test the resistance level near the 0.7295 area. Further, the continuation of the fall of the NZD/USD pair to the area below the level of 0.6535. An additional signal in favor of a fall will be a test of the trend line on the relative strength indicator. The cancellation of the fall option of the pair will be a strong growth and closing of the NZD/USD quotes above the level of 0.7605. In this case, we should expect a continuation of the rise with a goal above the level of 0.8335.