NZD/USD Classical 05.07
NZD/USD: While some might argue that despite the latest pullbacks, the market is still locked in a bull channel off of the 2010 lows, we contend that the channel is on the verge of being broken, with additional declines seen over the coming weeks. The 200-Day SMA, which has been supporting much of the uptrend this year, has now been breached, with the market managing to close below the longer-term SMA on Thursday. Although we have seen a number of daily closes below the 200-Day this year, the market has been unable to establish a 2-day close below the SMA. As such, we look for another close below the 200-Day SMA on Friday to confirm bearish outlook and accelerate declines below next key support which comes in by 0.6965. Look for any rallies to be well capped ahead of 0.7200.
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