Quotations of the currency pair New Zealand Dollar to US Dollar NZD/USD continue to move as part of the correction and formation of the “Head and Shoulders” reversal pattern. Moving averages indicate a short-term sideways trend in the pair. Prices broke through the area between the signal lines upwards, which indicates pressure from buyers of the currency pair and the potential continued growth of the instrument in the near future. At the time of the publication of the Forex forecast, the rate of the New Zealand Dollar to the US Dollar is 0.6633. At the moment, we should expect an attempt to develop a bullish correction and a test of the resistance level near the 0.6735 area. Further, as part of the forecast and Forex analytics for tomorrow, a rebound is expected and an attempt to start the fall of the currency pair to the area below the level of 0.6345 is expected.
NZD/USD Forecast New Zealand Dollar October 7, 2020
An additional signal in favor of reducing the NZD/USD currency pair on Forex will be a test of the trend line on the relative strength index (RSI). The second signal in favor of the decline will be a rebound from the upper border of the “Head and Shoulders” reversal pattern. Cancellation of the option of falling New Zealand Dollar quotes on Forex will be a strong growth and a breakdown of the level of 0.6825. This will indicate a breakdown of the resistance area, as well as the cancellation of the formation of the “Head and Shoulders” reversal pattern. In this case, the pair will continue to develop growth to the area above the level of 0.7295. It is worth waiting for confirmation of a decline in the NZD/USD currency pair with the breakdown of the support area and closing of quotations below the level of 0.6485, which will indicate a breakdown of the lower border of the “Head and Shoulders” reversal pattern.
NZD/USD Forecast New Zealand Dollar October 7, 2020 suggests an attempt to test the resistance area near the level of 0.6735. Where can we expect the continuation of the fall in quotations to the area below the level of 0.6345. An additional signal in favor of a decline will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to drop the NZD/USD pair will be a strong price increase and a breakdown of the level of 0.6825. In this case, we should expect the pair to continue to rise with a potential target above the level of 0.7295.
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