Fan Yang
1
All posts from Fan Yang
Fan Yang in Fan Yang,

Potentially Bearish Signs for NZD/USD

This week, the USD has been in mixed trading. We saw the EUR/USD and GBP/USD rally while the USD/JPY slide. The NZD/USD was choppy, but is ending the week looking to the downside.

NZD/USD 1H Chart 8/14(click to enlarge)

NZD/USD started the week sliding from last week's high of 0.6637. It came down to a new low on the year, 0.6466 before a sharp rally that cracked the 0.6637 high. However, it has since retreated, and the v-shape bullish reversal does not look valid anymore. 

Instead, the slide has brought price below the cluster of 200-, 100-, and 50-period simple moving averages. The 4H RSI has also come down below 30. This shows the market shifting to bearish bias and momentum. If price can hold below 0.6570 today and fall below 0.6540 to start next week, we would have a bearish continuation at least in the short-term with the 0.6466 low in sight. a break above 0.6585 however would signal further choppiness with some bullish bias in the short-term, putting the 0.6637-0.6650 highs back in sight.