The Kiwi has been descending day after day since July 19. All daily candles are tainted in red except for four non-consecutive positive days made in August. The current August’s price action of the NZDUSD pair was marked by a sharp bounce on August 8, after a previous large bearish candle.
On the daily chart, we see that that the price movement before the August 7 sharp downward candlestick is produced by the sellers, and is increasing after that climactic candle. Then, the action seems to happen with lower and lower volume. Also, we can see that the volume of the bearish candles is smaller than the one of the bullish ones. MACD seems to curve towards a bullish crossover, and Stochastics is in an oversold area.
On the 4H chart, we see that the price is moving in a kind of descending flag, which is a retracement of the previous upward bounce. Indicators seem to point for an upward continuation with a target at 0.649, its previous short-term top. We see that the last 4H candle bounced off of the 0.6396 level which is the close to the open of the candle that initiated the retracement of the sizeable bearish candlestick. That is a good sign, but traders would need the price to close above 0.6414 before going long (which is a movement against the primary trend, by the way).
Supports: 0.6397 and 0.6379
Resistances: 0.6410, 0.6450, 0.6470 and 0.6490