NZD/USD Price Analysis: Teasing ascending triangle breakdown on 4H chart
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- NZD/USD heavily sold-off into risk-averse market conditions.
- Bears eyeing an ascending triangle breakdown on the 4H chart.
- RSI remains bearish, leaving floors open for further downside.
NZD/USD has reversed almost the entire gains recorded on Thursday, holding the lower ground below 0.7200 ass the haven demand for the US dollar continues to weigh on the higher-yielding kiwi.
From a near-term technical perspective, the price is on the verge of confirming an ascending triangle breakdown on the four-chart.
The odds remain in favor of a downside break, given that the Relative Strength Index (RSI) points south below 50.00.
An hourly closing below the critical support at 0.7186, the confluence of the 100-simple moving average (SMA) and triangle support, will validate the bearish formation.
Subsequently, a drop towards the 200-SMA at 0.7132 cannot be ruled if the bears take over complete control.
On the flip side, the 21-SMA at 0.7200 needs to be recaptured to prompt a recovery towards the horizontal 50-SMA hurdle at 0.7222.
Further north, a sustained break above the pattern resistance at 0.7240 could invalidate the breakdown.
NZD/USD: Four-hour chart
NZD/USD: Additional levels
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