Technical Analysis – NZD/USD forms a bearish move near 8-month low

news_22_feb_nzd_usd_1NZDUSD plummeted to a fresh eight-month low at 0.6880 on Tuesday, breaking below the sideways channel that had been holding since February 26. The 40-day simple moving average (SMA) crossed the 200-day SMA to the downside, indicating more losses in the near term. The RSI and the MACD are slipping in the negative territories and the stochastic oscillator is entering the oversold zone.

More downside moves could take the market towards the 0.6800 psychological number ahead of the 38.2% Fibonacci retracement level of the up leg from 0.5970 to 0.7463 at 0.6700. Even lower, the market could touch the 38.2% Fibonacci of 0.6700 and the 0.6510-0.6585 zone.

Alternatively, a climb above the 0.6940 support and the 23.6% Fibonacci at 0.6995 could hit the 0.7100 handle. Overcoming this obstacle and the SMAs could move the price action until 0.7313. Above this, the three-and-a-half-year high of 0.7463 could halt the bullish move.

To sum up, NZDUSD is creating a negative tendency in the short-term and in a longer-term timeframe, the pair is creating a neutral-to-bearish move.

Origin: XM

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