NZDUSD came off the day’s high of 0.6751 as upside momentum faded. The stochastics suggest some positive momentum is still in place with the %K line yet to cross into the %D line but RSI is looking bearish again as it heads towards 30.
The long-term bearish outlook for NZDUSD doesn’t look to be going away anytime soon as prices continue to trade below the moving averages and the Ichimoku cloud. However, the recent mini rally may have eased some of the downside pressure with the kijun-sen line starting to drift sideways. This also serves as a resistance level for the pair around 0.6925. A break above this level could signal a shift into a range.
On the downside, immediate support is seen at the July 7 low of 0.6619. A drop below this would take it to the 2010 low of 0.6560, and this would place NZDUSD firmly back on the current downtrend.
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