NZD/USD: Rising Channel Compromised, Target 100 DMA
NZD/USD is consolidated at a key level within the rising daily channel.
The downside has come back on to play and the bears are starting to make a strong case for a breakout to the downside with a double top at the mid way point of the 0.70 handle. NZD/USD has been pressured below the 200 sma at 0.6927 on broad based USD strength and has subsequently lost the 0.69 handle. For today, we have the rBA's quarterly statement, while tomorrow the nonfarm payrolls will be the key driver.
RBA quarterly statement coming up - ANZ
NZD/USD bulls are losing control within the rising channel that was established mid-January of this year. To the downside, the 20 dma at 0.6902 was broken overnight, (low 0.6859 so far) and the rising support line has started to erode with next key level located at 0.6720 and the 100 dma. On a break there, double top on the daily sticks would be confirmed. On the flipside, a break of the 2016 highs, the next major target comes on the weekly sticks with Jan 2015 lows of 0.7176 ahead of the 100 weekly sma at 0.7284.