NZD/USD: Sets Its Sights On 0.67200
Goodmorning Traders and welcome back to EverythingFX. Firstly I would like to share my condolences to all those affected by the shooting in New Zealand.
This morning, the New Zealand Dollar is currently trading at 0.68480 against the US Dollar during the London Session.
Starting on the weekly timeframe we can see price has been trapped in a 200 PIP consolidation for about 18 trading weeks between 0.67000 and 0.69000. Looking at yesterday's daily candle closure we formed a nice bearish reversal pattern rejecting off the 0.68600 region forming a nice lower-high for the pair. Looking at the 4-hour timeframe we have been forming significant lower-swing-highs which could mean we in line for a new push to the downside.
What would provide extra confluence for a position on this pair would be a break of the ascending trendline we have in play which would initiate a new leg to the downside. Our next level of support for the pair is in and around 0.67200/0.67000 where we could look to target next. What would invalidate this position is a break of the minor daily resistance of 0.68700.
With the economic slowdown in China, i do expect further downside going forward but will be looking out for comments of the US & China trade deal which would increase the volatility in this pair.