The NZD/USD pair has been trending higher since the beginning of March and has entered into bullish channel, which was clearly broken after the New Zealand's GDP figures for the final quarter of 2017 turned to be a miss. Today the Kiwi continues to depreciate after breaking the support at 0.7250 and currently has settled at 0.7241.
Technically speaking the short term outlook remains neutral
to bearish. On the four hour time frame the price is developing well below its moving
averages having already bearish 20-day SMA, while the 100-day and 200-day SMAs
are staying flat around respectively 0.7280 and 0.7300. RSI and stochastic are located
within negative territories and both are showing strong downward momentum.
At this point there is not much in the way of the bulls unless first retaking 0.7300 area, where is the bottom border of the channel and next 0.7350. On the flip side, it seems that the bears have taken a victorious march after breaking 0.7240 and obviously next target is 0.7200.
But will the pair succeed to break this hurdle will become clear next week when both FOMC and RBNZ rate decisions are due and that might be the catalyst for the next downward move.
At this point there is not much in the way of the bulls unless first retaking 0.7300 area, where is the bottom border of the channel and next 0.7350. On the flip side, it seems that the bears have taken a victorious march after breaking 0.7240 and obviously next target is 0.7200.
But will the pair succeed to break this hurdle will become clear next week when both FOMC and RBNZ rate decisions are due and that might be the catalyst for the next downward move.
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