NZDUSD dropped below the 0.67 handle yesterday after a sharp sell-off following a surprise rate cut by the Reserve Bank of New Zealand. The pair extended its losses into Thursday to cross below the 200-day moving average but found support at the top of the Ichimoku cloud around 0.6615 where prices rebounded.
The stochastics are trending down and have fallen below 50 so further losses in the near term are possible. If prices continue to decline, the next support would come just below the cloud at 0.6530. A break below this level would change the current neutral bias to negative.
The MACD chart however suggests that the pair have maintained some upside momentum despite this week’s losses. Any attempted recovery would likely lead to resistance at around 0.6715.
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