NZD/USD Technical Analysis: Flashing red for third day, eyes rising wedge breakdown
|- NZD/USD's daily chart shows a bearish reversal candlestick pattern.
- The pair is also teasing a rising wedge breakdown.
NZD/USD is currently trading at 0.6367, representing a marginal loss on the day, having dropped 0.37% and 0.42% on Monday and Tuesday, respectively.
On Monday, the pair faced rejection at the 100-day moving average (MA) and created a bearish outside day candle. The bearish reversal signaled by Monday's candle was confirmed by Tuesday's bearish follow-through.
The daily chart also shows a rising wedge breakdown, a sign the bounce from 0.6204 has ended and the bears have regained control. The pair, therefore, could drop to 0.6269 (Sept. 3 low) and may extend losses to 0.6241 (Oct.16 low).
On the higher side, a close above the 100-day MA at 0.6459 is needed to confirm a bullish reversal.
Daily chart
Trend: Bearish
Technical levels
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.