NZD/USD Technical ANALYSIS: BEARISH
New Zealand Greenback manages to defend its six-week uptrendLonger-term chart setup nonetheless favoring a broadly bearish biasEach day shut under zero.6322 might mark downtrend resumption
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The New Zealand Greenback is idling above assist within the zero.6322-34 space. Final week’s would-be bearish breakout failed to seek out follow-through, with NZD/USD recoiling again right into a now-familiar vary containing value motion since mid-October.
Instant support-turned-resistance is within the zero.6425-41 zone. A push above that’s swiftly met by an identical barrier within the zero.6482-96 area. Breaking above the latter boundary with affirmation on a each day closing foundation looks as if prerequisite for longer-lasting features.
The dominant development bias is more likely to stay bearish even on this state of affairs nonetheless. Neutralizing that in all probability requires breaching development resistance set from July 2017, now just under the zero.68 determine. Piercing under zero.6322 would violate the bounds of the upswing from October lows, marking downtrend resumption.
Each day NZD/USD chart created utilizing TradingView
Zooming out to the month-to-month chart for a have a look at broader-based positioning helps clarify present indecision. NZD/USD is sitting squarely atop a 16-year value inflection space centered across the zero.60 determine. A wrestle for conviction at such a potent threshold appears totally inside motive.
Nonetheless, the general bias seems to favor weak spot right here as nicely. The Kiwi Greenback cleared two-decade assist in August, setting the stage for what seems like a tectonic draw back pivot. Offsetting these cues doubtless calls for clawing again above zero.6970.
Month-to-month NZD/USD chart created utilizing TradingView
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— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
To contact Ilya, use the Comments part under or @IlyaSpivak on Twitter