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.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
AUD/USD regains the constructive outlook above the 200-day SMA
AUD/USD advanced strongly for the second session in a row, this time extending the recovery to the upper 0.6500s and shifting its focus to the weekly highs in the 0.6580-0.6585 band, an area coincident with the 100-day SMA.
EUR/USD keeps the bullish performance above 1.0700
The continuation of the sell-off in the Greenback in the wake of the FOMC gathering helped EUR/USD extend its bounce off Wednesday’s lows near 1.0650, advancing past the 1.0700 hurdle ahead of the crucial release of US NFP on Friday.
Gold stuck around $2,300 as market players lack directional conviction
Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.
Bitcoin price rises 5% as BlackRock anticipates a new wave of capital inflows into BTC ETFs from investors
Bitcoin (BTC) price slid to the depths of $56,552 on Wednesday as the cryptocurrency market tried to front run the Federal Open Market Committee (FOMC) meeting. The flash crash saw millions in positions get liquidated.
FOMC in the rear-view mirror – NFP eyed
The update from May’s FOMC rate announcement proved more dovish than expected, which naturally weighed on the US dollar (sending the DXY to lows of 105.44) and US yields, as well as, initially at least, underpinning major US equity indices.