NZDUSD has been in a rising channel since mid-January, rising from 0.6346 to a high of 0.7053 reached in April. There was failure to remain above the key 0.70 level and breaking below this support are accelerated a decline out of the channel. This was a strong negative signal.
Prices also fell below the 38.2% Fibonacci level (retracement of the rise from 0.6346 to 0.7053) and are currently around 0.6732.
The short-term outlook is bearish as RSI has fallen below 50 into bearish territory, so this supports further downside momentum. The next target is the 50% Fibonacci at 0.6700 and then the 61.8% Fib at 0.6615. To the upside, prices would need to clear the 23.6% Fib at 0.6885 and re-enter the channel in order to weaken the bears and bring back the recent bullish trend that began in January.
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