Key Highlights
- NZD/USD started a major decline from well above 0.7000.
- A crucial bearish trend line is forming with resistance near 0.6840 on the 4-hours chart.
- EUR/USD is struggling to recover and might extend losses.
- GBP/USD could continue to move down below 1.3150.
NZD/USD Technical Analysis
The New Zealand Dollar started a major decline from 0.7150 against the US Dollar. NZD/USD gained bearish momentum after it broke the 0.7000 support level.
Looking at the 4-hours chart, the pair even settled below 0.7000, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The pair even broke the 0.6850 support level. It tested the 0.6740 zone and is currently consolidating losses. On the upside, the pair is facing resistance near 0.6800. There is also a crucial bearish trend line forming with resistance near 0.6840 on the same chart.
The trend line is close to the 23.6% Fib retracement level of the downward move from the 0.7176 swing high to 0.6736 low.
The next major resistance is near 0.6950 or the 50% Fib retracement level of the downward move from 0.7176 swing high to 0.6736 low. A clear break above the trend line resistance and then 0.6950 could open the doors for a steady upward move.
If not, there could be more losses below the 0.6730 and 0.6700 support levels. In the stated case, the pair may possibly decline towards the 0.6550 level.
Looking at EUR/USD, the pair is showing bearish signs and might continue to slide below 1.1200. Besides, GBP/USD could also decline further below 1.3150.
Economic Releases
- BoC Interest Rate Decision – Forecast 0.25%, versus 0.25% previous.
