NZDUSD - Approaching bullish support line
Currently trading at around 0.6750 levels, the Kiwi is dangerously close to the bullish support line and has created a spread double bottom pattern.
I've left the previous bearish resistance line in place just to highlight the moment when the trend initially began at the 0.66 cent location.
Should the pair bounce off this critical support line, then we may see a retest of the 0.70 region where demand previously ran out of steam. On the other hand, a sell signal and break downwards could see price revisit 0.66 and possibly collapse the most recent structure entirely.
The last thing to note is that NZDUSD also closed below the 200 day exponential moving average which is typically a sign that the trend is shifting further into the bearish camp.
I've left the previous bearish resistance line in place just to highlight the moment when the trend initially began at the 0.66 cent location.
Should the pair bounce off this critical support line, then we may see a retest of the 0.70 region where demand previously ran out of steam. On the other hand, a sell signal and break downwards could see price revisit 0.66 and possibly collapse the most recent structure entirely.
The last thing to note is that NZDUSD also closed below the 200 day exponential moving average which is typically a sign that the trend is shifting further into the bearish camp.