NZD/USD Technical ANALYSIS: BEARISH
- New Zealand Dollar sinks past 2018 bottom, hits three-year low
- Breakdown increases chance that 19-year uptrend is unraveling
- Near-term support now at 0.6348, back above 0.6425 eyes 0.65
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The New Zealand Dollar succumbed to renewed selling pressure anew after a brief consolidative pause, breaching support marked by the October 2018 low at 0.6425. Sellers now look poised to challenge the January 2016 bottom at 0.6348.
The 0.6425 level has been recast as near-term resistance. A reversal back above it – confirmed on a daily closing basis – sees the next upside hurdle in the 0.6482-96 area. This is another former support shelf, initially established in late May 2019.
NZD/USD daily chart created using TradingView
This breakdown brings NZD/USD closer to confirming penetration of rising trend support guiding the pair upward for nearly two decades. Confirming as much at the monthly close would point to a structural change in the dominant trend, setting the stage to probe support in the 0.5914-0.6197 initially.
NZD/USD monthly chart created using TradingView
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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