According to our analysis published on 10th Aug, we portrayed some strong bullish indications over the pair but in our "bullish and bearish conditions/possibilities" we also mentioned that if 0.69800 support line  was broken, the bears would take control of the market. On 16th Aug the market broke the aforementioned support line and went strongly dovish towards our 50% fibb retracement level in daily. Our upper trend line previously broken in daily has been providing us with a hint of strong support i.e 0.68000 which is also a major price action level for the pair to observe its stance before causing any further unexplained volatility in the market. The four hourly chart is showing strong oversold conditions in relative strength index while in daily time frame the RSI has stepped just below 30 zone. The exponential moving average 200 in weekly has also failed to put a sudden halt to NZDUSD falling conditions while in monthly the EMA50 and 200 both are almost standing at the same price as in weekly time frame. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

According to fundamentals, investors remain worried that the continuous spread of the highly contagious Delta variant of the coronavirus could lead to a global economic slowdown. Apart from this, expectations that the Fed will begin rolling back its pandemic-era stimulus later this year further took its toll on the global risk sentiment. In the absence of any major market-moving economic releases, speculations that the Fed would be prepared to announce tapering at the next meeting in September favours the USD bulls. This, along with weaker risk sentiment, suggests that the path of least resistance for the NZD/USD pair is to the downside. We are technically bullish on NZDUSD from current market price if market failed to break 0.68000 - with targeted destination at 0.68890 and further 0.70000 if we get a bullish closing above 0.69200. Also as we know that the monthly resistance 0.69200 is broken, the market has more chances according to fundamentals to leave a footprint at 0.67484-0.66300.

NZDUSD

Aug 20 2021