Friday, 27 April 2018

NZD/USD The corrective rebound may proceed further weakness


Since mid April the NZD/USD pair has entered into sharp downtrend and today made a new low striking 0.7035. We are witnessing the worst losing streak for about three years. During the past two weeks the price went into free fall until today met the support provided by the 61.8% Fibonacci retracement of latest November to February bullish run. The  current market price is 0.7093, but this bounce might be considered as a corrective one and warns for further weakness. As seen on the daily chart the price is developing well below its moving averages and also keeps the downtrend that has started since late 2017. RSI and stochastic are located within extreme negative areas with no signs of getting out of there. The first resistance is provided by the 50% Fibo of same retarcement followed by the 200-day SMA at 0.7140.



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