Analytics from Barclays Capital suggested to sell NZDUSD with the target as 0.6560:
- "We are bearish for commodity currencies such as AUD, NZD and CAD and would use short-term pullbacks as an opportunity to sell at better levels against the USD. Our greater bearish view for AUDUSD was encouraged by last week’s move to new lows for 2015," Barclays advises.
- "We also expect NZDUSD to extend losses toward our next targets near the 0.6560 multi-month range lows and then the 0.6400 area," Barclays projects.
As we see from the chart below - the monthly price is on bearish area crossed last border of Ichimoku cloud to go to the non-ranging trending zone. The price is crossing 0.6746 support level from above to below, and 0.6560 may be the next target as the next support level.
There are some more signals indicating the poissible breakdown in the near future with 0.6560 support level to be broken:
- Chinkou Span line is showing the future possible breakdown of the price movement within the bearish condition.
- AbsoluteStrength indicator is estimating the downtrend with no any ranging possibility in thge near future.
- Tenkan-sen crossed Kijun-sen from above to below for the primary bearish.
Thus, we can really expect the breakdown for this pair with 0.6560 as a target.
