Barclays Capital is suggesting to open sell trade near 0.6430 with the target near 0.6375 and then the 0.6235 year-to-date lows. Let's evaluate this forecast concerning the technical point of view using Metatrader.
NZD/USD: bearish ranging to breakdown. The price is on bearish market condition located below 100 SMA/200 SMA with symmetric triangle pattern to be broken to below for the bearish trend to be continuing. The price is located within the following key reversal s/r levels:
- 0.6895 resistance level, and
- 0.6102 support level.
There is intermediate support level for the price on the way to 0.6102 bearish target: this level is 0.6287.
- if the price
breaks 0.6895 resistance so the local uptrend as the bear market rally within the primary bearish market condition will be started;
- if the price breaks 0.6102 support level so the primary bearish will be continuing without ranging up to the new 'bottom' to be forming;
- if not so the price will be moved within the channel.
| Resistance | Support |
|---|---|
| 0.6895 | 0.6287 |
| N/A | 0.6102 |
