NZD/USD Technical Technique: BEARISH
NZ Greenbackbounce stalls above zero.68, RSI hints upside momentum ebbing
4-hour chart reveals break of January’s counter-trend help line
Sellers might initially goal zero.6767 however deeper losses may properly comply with
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The New Zealand Greenback is struggling to proceed pushing upward towards its US counterpart after establishing a tenuous foothold above the zero.68 determine. Certainly, the looks of adverse RSI divergence now means that ebbing upside momentum might precede a reversal downward.
Shorter-term positioning bolsters the case for a bearish situation. The four-hour chart exhibits costs have damaged rising development help guiding them increased because the starting of the yr following a retest of former resistance. This hints that current positive aspects had been corrective within the context of the broader drop from early December.
An preliminary transfer decrease from right here might even see sellers eyeing a possible goal at zero.6767. If true downtrend resumption is on the menu nevertheless, that modest pullback will precede far deeper losses. A each day shut above the January 15 excessive at zero.6849 would go a good distance towards invalidating the setup.
NZD/USD TRADING RESOURCES:
— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
To contact Ilya, use the Comments part beneath or @IlyaSpivak on Twitter