NZD/USD Long Term Technical Analysis June 2020

NZD/USD long-term technical analysis

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This year is a hard year for U.S dollar counterpart as crises happened, caused by coronavirus spread. March is the worst month for NZD/USD where the pair fell sharply to as low as 0.5465. However, the pair start making recovery in April as government and central banks across the world working desperately to put the economy back to its track.

This month, the pair moving upward following the economy reopening. But, the bullish situation will come under test as coronavirus cases start to increase again after economy reopening. It might not be long for NZD/USD to start moving lower again.

Currently, traders and investors are monitoring the second-quarter results. Worse than expected numbers will only put more pressure on U.S dollar counterpart.

New Month

Monthly chart

NZD/USD is in a long-term bearish trend which pushed the pair toward 0.5920 support level. Traders could see, there is no close below the 0.5920 even though the pair fell below it. This month, the pair stage a bullish attempt and currently trade above 0.6400. No higher high printed yet on the chart which mean the pair is in a corrective movement.

Without a close above 0.6750, NZD/USD will continue its bearish trend.

Weekly chart

The outlook on the weekly chart is similar to the monthly chart. Traders could find the high gets lower and there is no higher high printed yet. If a bullish scenario happens then NZD/USD might move higher toward 0.6825 – 0.6900 and turn lower to test the level around 0.6680.

On the other hand, if the pair start moving lower from the current level then it might target 0.5920 – 0.6000.

Daily chart

Both the weekly and monthly outlook is bearish for NZD/USD. The only chart which shows a bullish outlook is the daily chart. NZD/USD currently consolidating near the 0.6400. No bearish close below the level but the pair could not get higher. The pair’s next direction will depend on the breakout direction of the consolidation.

Trade plan

We are getting near the end of consolidation on the daily chart. The pair short-term trend is bullish which suggests traders weigh on the bullish scenario. However, the long-term outlook is bearish on the weekly and monthly charts. If traders take long positions then it must be treated as a short-term trade only until higher high above 0.6750 happen.

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