NZDUSD Looking Downside?

FCMForex

Member
53 2
The New Zealand dollar dropped below previous key support at 0.7623 against the US dollar with the bearish bias accelerating in the intraday. All the Simple Moving Averages are following prices and are currently forming a triple “Death Cross”, the lower Bollinger band is broken and that is increasing falling potential. The prices found support near the 161.8% Fibonacci extension of 0.7623 to 0.7847, at 0.7489.

Moreover, we can see that at the price pattern we can identify a “bearish price channel” that adds to bearish continuation expectations. Should the prices drop below recent support at 0.7509 then negative potential would increase. The NZDUSD was weighed by BoC decision to cut rates as well as by lower inflation figure. Fundamentals seem to agree with Technical analysis while ahead lies the US Jobless Claims expected at 301K.

Lastly, we can recognize that the Stochastic and the OsMA are overbought and that limits for the time being our short term selling attitude. We would watch closely this major currency pair and we would expect prices in the medium term to go lower in case the support at 0.7509 is breached, towards next support at 0.7365, ahead of the third floor at 0.7254. Normal 0 false false false EN-US X-NONE X-NONE

Resistance
0.7623
0.7780
0.7847
Support
0.7254
0.7509
0.7365
 

Attachments

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