NZDUSD was close to hitting another five-year low today as it was unable to hold above the 0.67 handle, having touched a high of 0.6730 earlier in the day. The pair is looking increasingly bearish as prices move further below the moving averages and the Ichimoku cloud. The downward sloping and negatively aligned tenkan-sen and kijun-sen lines are not signalling any change in the medium-term outlook, which is decisively bearish.
But with RSI drifting below 30 into oversold territory, a short term correction may be due in the near term. Resistance is likely to be provided by the tenkan-sen line around 0.6790. On the downside, the old support level from May/June 2010 around 0.6560 could prove the next hurdle against further falls for NZDUSD.
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