NZDUSD Bearish Trend Remains Intact

Nenad Kerkez

NZDUSD is perfectly following the trend, meeting all the targets we have previously discussed. Fundamentally Flash PMI rose by 0.2 % from the forecast ( 49.6 from 49.4 forecast) The expectations see RBNZ to further cut the rates which are putting additional weight to the pair.

Technically the pair is too low to position trade safely now, so I would rather wait for a retracement. We can see that the pair is making a valid bearish ZIGZAG pattern which is a sign of a strong bearish trend. POC comes at 0.6960-6970 ( Retail Gap trendline, H4, 50.0 ) but we can also mark 0.6930 as a possible retest zone ( H3, DPP, 38.2). 0.7000 levels should hold and 0.6750 is the target.

NZDUSD 4 Hour Chart

NZDUSD 4 Hour Chart

Source: admiralmarkets.com

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