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Fan Yang

NZD/USD so Far Confirming the Bearish Breakout

The NZD/USD has been consolidating last week roughly between 0.65 and 0.6585. The prevailing trend was bearish, and there was a bearish breakout below 0.65 earlier this week. 

NZD/USD 1H Chart 11/18

(click to enlarge)

So far, there are some signs that the market is indeed continuing the prevailing downtrend. 
1) Price is holding under the 200-, 100-, and 50-hour simple moving averages (SMAs). This reflects bearish bias even in the very short-term.
2) The 1H RSI pushed below 30, and held under 60 after a pullback, this suggests that bearish momentum is developing. 
3) Price held under 0.65 after pulling back 3 times. This shows respect to the broken range as resistance and points to downside risk.

Looking at the daily chart, we can see that the downside risk is to the 0.62-0.6240 lows on the year. 

NZD/USD Daily Chart 11/18

(click to enlarge)

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