Quotations of the currency pair New Zealand Dollar to US Dollar NZD/USD continue to move within the framework of the falling and descending channel. Moving averages indicate the presence of a short-term bearish trend for the pair. Prices broke through the area between the signal lines, which indicates pressure from the sellers of the currency pair and a potential continuation of the decline in the price of the instrument from the current levels. At the time of publication of the Forex forecast, the rate of the New Zealand Dollar to the US Dollar is 0.6219. At the moment, we should expect a demand for the development of a minor bullish correction and a test of the resistance level near the area of 0.6265. Further, as part of the forecast and analysis of Forex for tomorrow, the price is expected to bounce down and the demand for the development of the fall of the currency pair to the area below the level of 0.6065 is expected.
NZD/USD Forecast for May 16, 2023
An additional signal in favor of a decrease in the currency pair NZD/USD on Forex will be a test of the resistance line on the relative strength indicator. The second signal in favor of this scenario will be a rebound from the lower border of the bullish channel, which was broken down by sellers. A strong growth and a breakdown of the 0.6285 level will cancel out the possibility of a fall in New Zealand Dollar quotes on Forex. This will indicate a breakdown of the resistance area. In this case, the pair will continue its growth in the region above the level of 0.6645. It is worth waiting for confirmation of the fall of the NZD/USD currency pair with a breakdown of the support area and the closing of quotations below the level of 0.6165.
NZD/USD Forecast for May 16, 2023 suggests a demand for a test of the resistance area near the level of 0.6265. Why should we expect the quotations to continue falling to the area below the level of 0.6065. An additional signal in favor of a decrease will be a test of the trend line on the relative strength indicator. A strong price increase and a breakdown of the 0.6285 level will cancel the option of a fall in the NZD/USD pair. In this case, we should expect a continuation of the rise of the pair with a potential target above the level of 0.6645.
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