NZD/USD Technical Analysis: Head-and-shoulders breakdown confirmed

  • The American dollar found love in the overnight trade after the Fed signaled that rates could be hiked two times in 2019, dashing hopes of a pause.
  • The NZD/USD pair fell below 0.6784, confirming a head-and-shoulders breakdown on the 4-hour chart. The bearish reversal pattern indicates the rally from the Oct. 8 low of 0.6424 has ended and the bears have likely regained control. Notably, the pattern has opened the doors for a drop to 0.66 (target as per the measured move method).
  • Further evidence that bears are in a commanding position is the 14-day relative strength index (RSI) of 43.00 and the downward sloping 5- and 10-day simple moving averages (SMAs).
  • The bearish pressure would wane if the pair unexpectedly moves back above the 10-day SMA, currently at 0.6828.

4-Hour Chart

Trend: bearish

NZD/USD

Overview:
    Today Last Price: 0.6778
    Today Daily change: -17 pips
    Today Daily change %: -0.250%
    Today Daily Open: 0.6795
Trends:
    Previous Daily SMA20: 0.6849
    Previous Daily SMA50: 0.6729
    Previous Daily SMA100: 0.667
    Previous Daily SMA200: 0.6841
Levels:
    Previous Daily High: 0.6871
    Previous Daily Low: 0.6783
    Previous Weekly High: 0.6912
    Previous Weekly Low: 0.6778
    Previous Monthly High: 0.6887
    Previous Monthly Low: 0.6514
    Previous Daily Fibonacci 38.2%: 0.6817
    Previous Daily Fibonacci 61.8%: 0.6837
    Previous Daily Pivot Point S1: 0.6761
    Previous Daily Pivot Point S2: 0.6728
    Previous Daily Pivot Point S3: 0.6673
    Previous Daily Pivot Point R1: 0.6849
    Previous Daily Pivot Point R2: 0.6904
    Previous Daily Pivot Point R3: 0.6937

 

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