NZD/USD technical analysis: Constructive set-up on 1-hourly chart fails to inspire bulls, FOMC awaited
- The NZD/USD pair extended its steady intraday slide along a descending trend-channel and is currently placed at the lower end of its daily trading range.
- Given the previous session's goodish bounce, the mentioned channel constituted towards the formation of a bullish flag chart pattern on the 1-hourly chart.
Meanwhile, technical indicators on hourly/daily charts maintained their mildly bearish bias and haven’t been supportive of the constructive set-up, warranting caution before positioning for any further near-term recovery move.
A convincing break through the trend-channel support, leading to a subsequent slide below the key 0.6500 psychological mark will negate any near-term positive bias and turn the pair vulnerable to resume its bearish trend.
Below the said handle, the pair is likely to take out yearly lows support near the 0.6480 region and aim towards testing Sept.-Oct. 2018 swing lows, around the 0.6430-25 region before eventually dropping to the 0.6400 round figure mark.
Alternatively, a sustained move beyond the trend-channel resistance, currently near the 0.6530 region, will reinforce the bullish set-up and prompt some short-covering move, assisting the pair to head towards reclaiming the 0.6600 handle.
NZD/USD 1-hourly chart
This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.