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Technical Analysis – NZD/USD strong downside bias after testing 0.7000

 

The intra-day bias on the NZD/USD remains on the downside after the large drop early on Thursday to a near 5-year low of 0.6996. The decline from the peak of 0.7743 (April 29 high) has resumed after a brief upside move to 0.7231 on Wednesday.

After a break below support of 0.7175 (February 3 low), this level became a strong resistance level which prices tested several times since the beginning of June.

The outlook is bearish since the market remains below the Ichimoku cloud. The tenkan-sen and kijun-sen lines are falling, which support a bearish bias. Also RSI is in bearish territory below 50. It is not at oversold levels yet so there is room for further downside momentum.

The next targets lie at 0.6792 and 0.6559, which are the July and May 2010 lows respectively.

The intra-day bias on the NZD/USD remains on the downside after the large drop early on Thursday to a near 5-year low of 0.6996. The decline from the peak of 0.7743 (April 29 high) has resumed after a brief upside move to 0.7231 on Wednesday.

After a break below support of 0.7175 (February 3 low), this level became a strong resistance level which prices tested several times since the beginning of June.

The outlook is bearish since the market remains below the Ichimoku cloud. The tenkan-sen and kijun-sen lines are falling, which support a bearish bias. Also RSI is in bearish territory below 50. It is not at oversold levels yet so there is room for further downside momentum.

The next targets lie at 0.6792 and 0.6559, which are the July and May 2010 lows respectively.

 


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