According to our analysis published on 1st August, we gave some bullish indications over the pair in terms of daily time frame NZDUSD stood at strong demand zone with probability of bullish reversals before falling any further. Also in weekly time frame - exponential moving average 200 was underlying as a support and providing a pull back. Though the market broke its previous weekly and daily major price action level i.e 0.6920 and went till 0.68768 which is our monthly support. We expected the market to provide us with a temporary dive towards our major support zone at 0.69220 and it did actually but didnt break the low so we changed our opinion towards favoring the hawks for now as long as the market keeps itself consolidated above the aforementioned level. Now, according to the current market scenario, our exponential moving average 200 and 50 in daily has showed its strength enough as a resistance to prevail New Zealand dollar versus U.S dollar from breaking out of the level along with 50% fibb also supporting the stance of our EMA200 and 50. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

In four hourly chart the market is trading below 0.70200, a major price action with relative strength index retreating from level 70. Our exponential moving average 200 in four hourly chart is also above the current market price and NZDUSD has failed to show the strength to breakout of its daily high i.e 0.70200- 0.70500. This behavior of bearish extended consolidation is expected to take down New Zealand dollar versus U.S dollar towards 38.2% fibb level i.e 0.68830 and 23.6% fibb level i.e 0.67522. The aforementioned levels might become points of bullish reversal, but until then NZDUSD will stay under bearish pressure if the upcoming event of Employment change q/q and unemployment rate provided any bullish strength to break above its daily highs. 

NZDUSD H4

Aug 03 2021