NZD/USD Could Extend Decline Below 0.6700

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Keys

  • NZD / USD started a major decline of well over 0.7000.
  • A decisive bearish trend line is forming with resistance near 0.6840 on the 4-hour chart.
  • EUR / USD is struggling to recover and could extend losses.
  • GBP / USD could continue to move below 1.3150.

NZD / USD Technical Analysis

The New Zealand Dollar began a significant decline of 0.7150 against the US Dollar. NZD / USD gained a bearish momentum after breaking the 0.7000 support level.

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Looking at the 4-hour chart, the pair even settled below 0.7000, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The pair even broke the 0.6850 support level. It tested the 0.6740 zone and is currently consolidating losses. On the upside, the pair is facing resistance near 0.6800. There is also a decisive bearish trend line forming with resistance near 0.6840 on the same chart.

The trend line is close to the 23.6% Fib-rich level of the downward move from the 0.7176 swing high to 0.6736 low.

The next major resistance is near 0.6950 or the 50% Fib-rich level of the downward movement from 0.7176 swing high to 0.6736 low. A clear break above the trend line resistance and then 0.6950 could open the doors for a constant upward movement.

Otherwise, there could be more losses below the support levels of 0.6730 and 0.6700. In the stated case, the pair may decline to the 0.6550 level.

Looking at EUR / USD, the pair is showing bearish signs and could continue to slide below 1.1200. In addition, GBP / USD could also fall below 1.3150.

Economic Editions

  • BoC Interest Rate Decision – Forecast 0.25%, versus 0.25% previous.

Source

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