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Home » Daily Technical Reports » NZD/USD Today Technical Report 04/05/2016

NZD/USD Today Technical Report 04/05/2016

NZD/USD tumbled on Tuesday after it hit resistance at 0.7050 and during the Asian day today, it fell below the support (now turned into resistance) barrier of 0.6900 (R1). Having in mind that the rate has been trading in a wide range between 0.6840 (S1) and 0.7050 since the 11th of April, I would consider the short-term outlook to be flat. For now though, I see the likelihood for the pair to continue trading lower and perhaps challenge again 0.6840 (S1), the lower bound of the aforementioned rate. The notion is also supported by our short-term momentum studies, which detect downside speed. The RSI fell below its 50 line and now appears to be headed towards 30, while the MACD, already below its trigger line, has just turned negative. On the daily chart, the failure to overcome the 0.7050 hurdle makes me turn neutral as for the broader picture as well. There is also negative divergence between the daily oscillators and the price action, which is probably a sign of weakness in the prevailing uptrend.

NZD 04

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