nzd-usd

NZD/USD – The latest rally out from 0.7080 is now classed as corrective rather than a bullish continuation, with weekly studies already rolling over from overbought and warning of a major shift in the structure. While the recent failure to close below the critical 50-Day SMA (0.7255) is concerning, we anticipate that the market will soon manage a close below the medium-term SMA. Look for a lower top to now carve out below 0.7635, ideally by Tuesday’s 0.7465 high, ahead of a fresh drop to be confirmed on a break back below 0.7080.  Initial support comes in by 0.7375, with a close below to accelerate declines. Ultimately, only back above 0.7500 gives reason for concern.

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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