NZD/USD: We have seen a notable shift in the trend over the past several weeks, with the market stalling out by 0.7635 back in October and reversing to put in a series of consecutive lower tops and lower lows since. The most recent lower top looks now to be in place by 0.7320, with the market now establishing itself well below the 100-Day SMA. Tuesday’s break below 0.7025 officially confirms the 0.7325 lower top and opens the next downside extension towards the 0.6700-0.6800 over the coming weeks. Look for any inter-day rallies to be well capped ahead of the 10/20/100-Day SMAs in the mid 0.7100’s.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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