NZD/USD Technical Analysis: NZ Dollar Looks Likely to Fall Further
NZD/USD Technical Strategy: BEARISH
- NZ Dollardeclines for five consecutive days, stalls above 0.67 figure
- Break of counter-trend support line hints bearish trend has resumed
- January lows in focus if sellers can manage daily close below 0.6686
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Signs of ebbing upside momentum preceded a turn lower for the New Zealand Dollar against its US namesake, as expected. The currency pair has now declined for five consecutive sessions, making for the longest losing streak in over three months.
A look at shorter-term positioning on the four-hour chart shows prices consolidating losses in the 0.6726-67 area. Still, seeing clear follow-through on the break of rising trend support guiding the upswing from lows from set at the beginning of the year suggests the longer-term down trend has resumed.
From here, a move below the 0.6726 opens the door for a test of the next layer of support in the0.6686-0.6713 area. A daily close below that sets the stage for a decline to revisit zone 0.6592-0.6619, where the last down leg started in early December out of steam.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.