Quotes of the currency pair New Zealand Dollar against US Dollar NZD/USD continue to move as part of the development of the correction and the downward channel. The potential for the formation of a reversal pattern “Head and Shoulders” remains. Moving averages indicate the presence of a short-term bearish trend for the pair. Prices have broken through the area between the signal lines up, which indicates pressure from buyers of the currency pair and a potential continuation of the growth in the value of the instrument already from current levels. At the time of publication of the Forex forecast, the exchange rate of the New Zealand Dollar to the US Dollar is 0.6302. At the moment, we should expect an attempt to develop growth and test the resistance level near the 0.6325 area. Further, as part of the Forex forecast and analytics for tomorrow, the price is expected to break down and an attempt to continue the fall of the currency pair to the area below the level of 0.5985.
Forex forecast and analytics NZD/USD for August 5, 2022
An additional signal in favor of the fall of the NZD/USD currency pair on Forex will be a test of the resistance line on the relative strength index (RSI). The second signal in favor of the fall will be a rebound from the upper curtain of the Head and Shoulders reversal pattern. Cancellation of the option of falling quotes of the New Zealand Dollar on Forex will be a strong growth and a breakdown of the level of 0.6515. This will indicate a breakdown of the resistance area and the upper border of the descending channel. In this case, the pair will continue to develop growth to the area above the level of 0.6785. Expect confirmation of the fall of the NZD/USD currency pair with a breakdown of the support area and closing of quotes below the level of 0.6185, which will indicate a breakdown of the lower boundary of the “Head and Shoulders” reversal pattern.
Important news from New Zealand, which may affect the course of the pair, is not expected, so the pair will continue to move within the framework of technical analysis.
Thus, Forex forecast and analytics NZD/USD for August 5, 2022 suggests an attempt to test the resistance area near the level of 0.6325. Where should we expect the quotes to continue falling to the area below the level of 0.5985. An additional signal in favor of the decline will be a test of the trend line on the relative strength index (RSI). Cancellation of the option of the fall of the NZD/USD pair will be a strong price increase and a breakdown of the level of 0.6515. In this case, we should expect the pair to continue to rise with a potential target above the level of 0.6785.