NZD/USD technical analysis: Constructive set-up on 1-hourly chart fails to inspire bulls, FOMC awaited
|- The NZD/USD pair extended its steady intraday slide along a descending trend-channel and is currently placed at the lower end of its daily trading range.
- Given the previous session's goodish bounce, the mentioned channel constituted towards the formation of a bullish flag chart pattern on the 1-hourly chart.
Meanwhile, technical indicators on hourly/daily charts maintained their mildly bearish bias and haven’t been supportive of the constructive set-up, warranting caution before positioning for any further near-term recovery move.
A convincing break through the trend-channel support, leading to a subsequent slide below the key 0.6500 psychological mark will negate any near-term positive bias and turn the pair vulnerable to resume its bearish trend.
Below the said handle, the pair is likely to take out yearly lows support near the 0.6480 region and aim towards testing Sept.-Oct. 2018 swing lows, around the 0.6430-25 region before eventually dropping to the 0.6400 round figure mark.
Alternatively, a sustained move beyond the trend-channel resistance, currently near the 0.6530 region, will reinforce the bullish set-up and prompt some short-covering move, assisting the pair to head towards reclaiming the 0.6600 handle.
NZD/USD 1-hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.