NZDUSD has been in a rising channel since mid-January, rising from 0.6346 to a high of 0.7053 reach in April. There was failure to remain above the key 0.70 level and breaking below this support accelerated a decline out of the channel. This was a strong negative signal.
Prices also fell below the 38.2% Fibonacci level (retracement of the rise from 0.6346 to 0.7053) and are currently around 0.6732.
The outlook remains bearish as RSI has fallen below 50 into bearish territory, so this supports further downside momentum. The next target is the 50% Fibonacci at 0.6700 and the 61.8% Fib at 0.6615. To the upside, price would need to clear the 23.6% Fib and re-enter the channel in order to weaken the bears and bring back the recent bullish trend from January.
Origin: XM
