NZD/USD Technical Analysis: Head-and-shoulders breakdown confirmed
- The American dollar found love in the overnight trade after the Fed signaled that rates could be hiked two times in 2019, dashing hopes of a pause in 2019.
- The NZD/USD pair fell below 0.6784, confirming a head-and-shoulders breakdown on the 4-hour chart. The bearish reversal pattern indicates the rally from the Oct. 8 low of 0.6424 has ended and the bears have likely regained control. Notably, the pattern has opened the doors for a drop to 0.66 (target as per the measured move method).
- Further evidence that bears are in a commanding position is the 14-day relative strength index (RSI) of 43.00 and the downward sloping 5- and 10-day simple moving averages (SMAs).
- The bearish pressure would wane if the pair unexpectedly moves back above the 10-day SMA, currently at 0.6828.
4-Hour Chart
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Trend: bearish
NZD/USD
Overview:
Today Last Price: 0.6778
Today Daily change: -17 pips
Today Daily change %: -0.250%
Today Daily Open: 0.6795
Trends:
Previous Daily SMA20: 0.6849
Previous Daily SMA50: 0.6729
Previous Daily SMA100: 0.667
Previous Daily SMA200: 0.6841
Levels:
Previous Daily High: 0.6871
Previous Daily Low: 0.6783
Previous Weekly High: 0.6912
Previous Weekly Low: 0.6778
Previous Monthly High: 0.6887
Previous Monthly Low: 0.6514
Previous Daily Fibonacci 38.2%: 0.6817
Previous Daily Fibonacci 61.8%: 0.6837
Previous Daily Pivot Point S1: 0.6761
Previous Daily Pivot Point S2: 0.6728
Previous Daily Pivot Point S3: 0.6673
Previous Daily Pivot Point R1: 0.6849
Previous Daily Pivot Point R2: 0.6904
Previous Daily Pivot Point R3: 0.6937