NZD/USD Too Far Too Fast?
Chart Prepared by Jamie Saettele, CMT
-“Kiwi is back at resistance for the 3rd time in 3 weeks so be aware of breakout potential. A breakout would target the .7500 area. The 50% retracement of the decline from 2014 is .7520 while the 2005 high and 2012 low are near .7465.” The rate broke out on the 12th but that advance has been erased. As such, the move is viewed as a false breakout and potentially bearish signal. Divergence with RSI is viewed in a negative light as well.