NZD/USD Classical 05.12
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. However, the 200-Day SMA, which has been supporting much of the uptrend this year, needs to be convincingly broken to confirm our bias and accelerate declines. While we have seen a one day close below the longer-term SMA a number of times this year, a two-day close below the 200-Day SMA will be required to trigger the shift in structure. In the interim, look for intraday rallies to be well capped ahead of 0.7250.
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