8 MAY 2018
The anticipated bullish breakout did not materialize. Indeed, the failed breakout (of 2017) leads to the regular sell-off. Prices are heading towards the main support area between 0.6870 and 0.68. Some overshooting is allowed for due to the high momentum of the intraday down trend (and general USD strength).
However, a convincing break below 0.68 would be particularly bearish for the longer term; no major levels are found until ~0.6250. Until a breakout occurs this market is only interesting for range traders. As with almost all USD crosses, there is a growing bullish-USD bias.
- Near-term trend: negative
- Long term trend: neutral
- Outlook: choppy but neutral
- Strategy: range trading or avoid
- Support: 0.6870 / 0.6800 / 0.6250-
- Resistance: 0.7165 / 0.7360 / 0.7520
- Outlook cancelled/neutralized: n/a
Weekly chart NZD/USD