The bullish trend in NZDUSD, that began at the start of this year, is under threat. This week’s strong decline has replicated last week’s reversal in sentiment from lower levels.
After the positive trigger of spot NZDUSD moving above the 21 week moving average (confirming a similar positive cross in RSI) prices moved nearly 3 1/2 big figures higher over 4 weeks. Subsequent consolidation, including a marginal new high, marked the following 2 months of trading . But last week’s losses were the most aggressive in NZDUSD since October and they have been continued over the last 4 days.
The 21 week average has been broken, as has the corresponding RSI average. Confirmation is needed by a weekly close below the averages (.7204 in spot NZDUSD). That is, of course, looking likely and would then target downside to initial objectives of .6953 and .6834.
Our Trend Table would be updated to reflect this change at the start of next week.
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